Cape: No Prop B pay raise

Like many low-paid workers, sisters Alicia and Angela Broshuis voted in November for the state proposition to increase the minimum wage. Both earn $5.35 per hour working desk jobs at the Osage Community Centre in Cape Girardeau.

The jobs are good, they say, allowing the Southeast Missouri State University students flexible hours and study time.

But they were shocked recently when a supervisor told them their wages won't increase to the new level of $6.50 per hour Monday. In fact, their wages won't rise at all.

"I just took it for granted that it would rise to that level," Alicia Broshuis said. "I didn't think there was any way it wouldn't apply to my job."

A projected 256,000 Missouri workers -- 10 percent of the state's work force -- will receive the raise mandated by Proposition B, which passed with more than 75 percent of the vote.

But the city of Cape Girardeau has a different interpretation. City staff, aided by city attorney Eric Cunningham, believe Proposition B does not apply to city employees because of its wording. And the city doesn't plan to raise its workers' pay. The Missouri Division of Labor Standards believes Cape Girardeau is wrongly interpreting the statute.

"This is a tough decision for us. Obviously if we had the money available as a city we'd give it more consideration, but right now this is the way we're moving forward," said David Milam, manager of human resources for the city.

Cape Girardeau says increasing wages to its approximately 200 part-time workers earning below $6.50 would cost the city $110,000 in 2007.

The workers are largely employed in summer months, and jobs range from working the concession at Shawnee Park to the pro shop at the golf course to lifeguards to maintenance staff at city parks and cemeteries.

Though a state municipal group backs up Cape Girardeau's interpretation, phone calls placed this week to 13 Missouri municipalities revealed none following Cape Girardeau's path. Those cities include Kansas City, St. Louis, Springfield, Columbia, Joplin, Jefferson City, Sikeston and Poplar Bluff. Some of those cities have few minimum-wage workers; some have none.

Jackson employs about 23 part-timers making less than the new minimum wage and will raise pay rates at a cost of $10,000 in 2007.

Scott City employs about 20 part-timers below the limit, all of whom work during summer months. City administrator Ron Eskew said staff will address the issue at that time but indicated a pay raise is likely.

As of Thursday, no one at the Missouri Department of Labor Standards, the Missouri Municipal League or Cape Girardeau City Hall was able to name another Missouri city not planning to comply with Proposition B.

Cape Girardeau, though, says it has reviewed the minimum wage statute and believes that because the text names certain employers, but not municipalities, as being included, city employers are exempt.

The city also believes that its status as a home-rule charter city gives it protection and autonomy under the Missouri Constitution.

Mayor Jay Knudtson said the wage freeze was solely a staff decision. Knudtson said he believed other cities were following a similar strategy until he was informed otherwise by the Southeast Missourian.

Cape Girardeau's interpretation is backed by the Missouri Municipal League, which commissioned Ivan Schraeder, a Kansas City lawyer, to review the statute. Schraeder found that municipal employees are likely covered under federal, not state, law. The federal minimum wage is still $5.15 per hour, though members of the newly elected Congress have vowed to raise it.

Some state officials call the analysis used by Cape Girardeau and others wishful thinking.

"We've spent a lot of time on this. We've had our lawyers look at it very closely, and we feel very confident it applies to cities. This is not a gray area in our opinion," said Alan Dillingham, director of the Division of Labor Standards for Missouri. His division is responsible for enforcing labor law.

Dillingham said municipalities violating the law will be subject to investigations or possibly fines. "If we would get a complaint from one of the employees, we would come down to look at the thing and launch an investigation," he said.

The Division of Labor Standards will attempt to collect on behalf of employees who do not receive the raise. The employer would be liable for the full amount of the wage rate plus damages of an equal amount. The employer would also pay for all attorney fees.

"We're getting a tidal wave of phone calls right now" from both cities and private employers, Dillingham said. "We've talked to a lot of cities and we're telling them to follow the new law and its boundaries. ... Anywhere there is an employer/employee relationship it would be applicable."

If nothing else, Cape Girardeau could be hurt by competition. Its low-paid workers might leave for higher pay in neighboring cities or the private sector.

"I think they'll have a hard time finding workers. Especially college students who can find jobs at school," said Angela Broshuis, who added that at least one worker at the Osage Community Centre quit upon hearing the news that wages wouldn't rise.

Neither of the Broshuises said they planned to quit.

Milam said if a competitive market makes hiring difficult, Cape Girardeau may change course. "We may have to do a little supply and demand and up the ante for some workers," he said.

But he's optimistic many workers will stay.

"These are fun jobs, and they're real positive learning experiences. I suspect that your Burger Kings and McDonald's may have been paying more than the federal minimum wage and we've been able to compete with them," he said. "Because we offer a fun job, a good place to work and a lot of autonomy."

tgreaney@semissourian.com

335-6611, extension 245