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But how the Dillon Rule interpretation and the old Virginia minimum wage law could affect some employers is because of the fact that Maryland is right next door to Virginia, at least near the Washington DC area. And in that regard, Maryland now has a living wage law for contractors dealing with the state government in public projects. And Maryland also has a new Maryland minimum wage law that we have talked about as well recently.

So, you ask? Well, the “so” is the fact that some opponents of the General Assembly’s position, and some opponents of the Attorney General’s position, suggest that because Virginia’s minimum wage is only $5.15 per hour—and that Maryland’s minimum wage is $5.15 per hour and its living wage in the Washington DC are is $11.30 per hour—the state of Maryland will then attract the most qualified and best workers in the area.

It is an interesting view, and kind of brings together all of the pros and cons of the living wage and the minimum wage that we have seen in the last few months, while state politicians and federal politicians have been arguing over whether higher minimum wages are better for the economy and for employers overall, or whether they hurt the economy in the long run and hurt an employer’s competitive chances.

We shall see in Virginia. Of course, things might change soon there anyway, because the passage of the federal minimum wage bill—if and when it happens—could at least even up the minimum wage in Virginia in 2008 for most employers with the Maryland minimum wage, thereby ending that price differential. By the midyear of 2008, according to the federal minimum wage bill, many employers in both states would be paying a federal minimum wage of $6.50, since that rate would be higher than both local minimum wages.

Last 10 posts by Mark

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• New Jersey Federal Minimum Wage Alert - June 10th, 2007
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