Lexington’s minimum wage ordinance was given first reading by the Urban County Council Thursday.
The measure, which would raise the city’s minimum wage to $10.10 over the next three years, faced two potential amendments. The first, proposed by Councilmember Bill Farmer, would exclude tipped employees from the minimum wage increase. He said even though the tipped minimum wage remains unchanged, the rate at which these employees are paid would be increased by the new amount.
“Whatever that minimum is, plus whatever the tips would be, it would be incumbent upon the employer to pay the difference between those two,” he explained.
This motion was defeated, and was followed by an amendment proposed by Councilmember Jennifer Scutchfield. She wanted certain companies with 50 or less employees to be exempt from the ordinance, using definition of small business spelled out in the Affordable Care Act . Several councilmembers, including Vice Mayor Steve Kay, said such an exemption would gut the entire proposal.
"What we gain from putting money in the hands of people who need it badly and will only go and spend it on food, on clothing, on housing, it has a positive impact on the entire economy," he said.
That motion was also defeated, but an amendment that exempted agricultural workers was successful. The ordinance now awaits a second reading by the council.
