SB193 Testimony in support by Andy Donahue 4/22/15
Three reasons for a $9.00 minimum wage
1.
Wages will increase for over 9% of the State’s lowest earners.
2.
Raising the wage to $9.00 lowers the cost of the highest ACA premium by 86%
3.
There are 10 national companies with nearly 200 locations already paying
$9.00 an hour in Nevada
Assembly Committee: Commerce and Labor
Exhibit: D Page 1 of 5 Date: 04/22/2015
Submitted by: Senator James A. Settelmeyer
1. Wages will increase for over 7.2% of the State’s lowest earners.
According to the Nevada Department of Employment, Training, and Rehabilitation
9.1% of workers earn $9.00 an hour or less and 5.3% of workers are responsible for
their own health coverage
Wage
Range
$7.25-$8.25
$8.25-$8.50
$8.50-$8.75
$8.75-$9.00
Estimated
Employees
44,000
24,452
14,535
21,633
Percentage of
Employees
3.8%
2.1%
1.3%
1.9%
D-2
Insurance via
Employer
Yes
No
No
No
2.Raising the wage to $9.00 lowers the cost of the highest ACA premium 86%
At $8.25 an hour ACA premiums reduce a fulltime employee’s current gross income
by $1,644 from $17,160 to $15,516.
At $9.00 an hour ACA premiums will reduce a fulltime employee’s current gross
income by $218 from $17,160 to $16,942.
Current impact of highest
premium on income
Impact of highest
premium on $9.00 an hour
income
17,160 –1,644 =$15,516
18,720 – 1,778 = $16,942 9.5% of W-2 wages before
deductions (ACA standard
for affordability)
subtracted from gross
income
$17,160 –$15,516= $1,644 $17,160 – $16,942 = $218 Current gross income
minus net income after
ACA health costs minus
$218 is 86.74% less than $1,644
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3. There are 10 national companies with nearly 200 locations already paying
$9.00 an hour in Nevada
Companies Paying More then $9/hour
Ben & Jerry’s
Trader Joe’s
Costco
Whole Foods
REI
In-N-Out
GAP
Target
Wal-Mart
Starbucks
Number of NV Locations
6
10
4
5
3
16
11
17
31 +
100+
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Figures and Calculations:
Earning $8.25 an hour / $17,160 a year
Health premiums today can cost as much as $1,644 to bring a fulltime worker’s net
income to $15,516 under ACA.
Earning $9.00 / $18,720 a year
Health premiums at $9.00 an hour are as high as $1,778 and bring a fulltime
worker’s net income to $16,942 under ACA.
Uninsured minimum wage earners are stake holders
For employees earning $8.25 an hour and paying for their own health coverage SB
193 equates a $1,426 increase to net income and a $1,426 decrease in health
premium costs.
The $1,426 increase to net income is the difference between the net incomes after
health costs at $8.25 an hour ($15,516) and $9.00 an hour ($16,942).
$16,942-$15,516= $1,426
The $1,426 decrease in health premium costs occurs when someone’s net
income after paying maximum heath costs at $9.00 an hour is compared to the
current gross income at $8.25 before paying maximum health costs.
Highest and lowest ACA Premiums:
$8.25 = $17,160 a year
Gross income minus highest ACA
Premium
$17,160 – 1,644 = 15,516
Gross income minus lowest ACA
Premium
17,160-1118=16,042
$9.00 = 18,720 a year
Gross income minus highest ACA
Premium
18,720 – 1,778 = 16,942
Gross income minus lowest ACA
Premium
18,720 -1118 = 17,602
ACA Premiums
9.5% of W-2 wages before deductions
(maximum premium under qualified
plan)
9.5% of Federal Poverty level for a single
individual (lowest premium under
qualified plan)
ACA Premiums
9.5% of W-2 wages before deductions
(maximum premium under qualified
plan)
9.5% of Federal Poverty level for a single
individual (lowest premium under
qualified plan)
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