Iowa Legislature freezes casino wages

Iowa casino workers will have their minimum wage fixed at $9.06 from December 31 even if the federal minimum wage is raised.

US.- Iowa legislators have passed a bill that fixes the minimum wage for casino employees in the state at $9.06 even if the federal minimum wage goes up. 

Under existing law, casino workers that are paid by the hour must earn at least 125 per cent of the federal minimum wage – currently $9.06 an hour.

But a provision in a bill that cleared the legislature last week makes $9.06 per hour the permanent rate of pay from December 31, even if the federal minimum wage is raised.

Democrat Representative Chris Hall, criticised the move after the debate in the Legislature, arguing that casino employees face a complex situations at work and they deserve higher remuneration.

He said: “Maintaining a low base of wages for a significant number of people in the employ of casinos I think is sending the wrong signal. The customer base that they attract and the challenges that these workers need to address at work on a daily basis can be pretty complex.

“And it also is the only environment that workers have to go in the state of Iowa in which they’re subjected to a workplace with tobacco smoke still.”

The Iowa Gaming Association notes that under the existing law if the federal minimum wage increases to $15, the hourly wage floor for casino workers would go to at least $18.75 cents an hour.

Last week, the Legislature also passed a bill that erases taxes on promotional play at casinos. Until now, casinos had been taxed on the use of promotional credit as it were revenue.