A bill revising the minimum wage ballot initiative passed in 2014 has failed to pass the House floor. South Dakota voters passed Initiated Measure 18 last November, which raises the minimum wage from $7.25 to $8.50. The measure also provided for annual minimum wage increases based on the Consumer Price Index or CPI. This essentially ties the minimum wage to the rate of inflation. However, the measure prevents any decreases in the minimum wage. House Bill 1095 changes this last provision allowing the minimum wage to decrease if there is a negative CPI. Representative Jim Bolin of Canton says the minimum wage should adjust in good and bad times.
"If we’re going to have a CPI component in this measure then we should have one that can measure all possible economic conditions," says Bolin.
Several lawmakers spoke against the bill stating that the legislature should respect the voters of South Dakota. The bill failed to pass the house with 14 yes votes and 53 no votes.