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Committee approves amended minimum-wage indexing ordinance after hours of testimony

Government Operations and Fiscal Policy Committee, Prince George's County Council · October 7, 2024
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Summary

CB 88-2024, to index the county minimum wage to CPI-U (Washington–Arlington–Alexandria area) with a 5% annual cap, was amended to clarify geographic CPI choice and to add consideration for direct‑service provider wage impacts; the committee voted unanimously to move the amended bill favorably.

The committee debated CB 88-2024 at length and heard more than a dozen speakers representing labor organizations, economic-policy analysts, small-business groups and trade associations. Staff explained the bill would index the county minimum wage to the consumer price index for all urban consumers (CPI-U), using the Washington–Arlington–Alexandria area measure, beginning July 1, 2025, with safeguards including a 5% cap and suspension language tied to negative employment growth.

Christopher Meyer, research analyst at the Maryland Center on Economic Policy, said the proposal would "boost wages for nearly 44,000 workers by more than $20,000,000 per year," and argued indexing preserves the purchasing power of the minimum wage over time. Business representatives — including the Maryland Hotel Lodging Association and convenience-store owners — urged caution about immediate timing and implementation and asked for technical amendments (e.g., shifting the effective date to Jan. 1 to allow budget planning). Sponsor Councilmember DeNoga and others pushed for the changes as a way for the county to lead by example, while committee members sought additional data on impacts for the developmental-disability provider community and county fiscal capacity. The committee adopted clarifying amendments (specifying the regional CPI and adding a factor to consider average DSP wages) and moved the bill favorably out of committee with a unanimous committee vote to forward the amended measure.