House Republicans this month look set to advance legislation that would widen a loophole to federal minimum wage laws in Puerto Rico.
The push to exempt Puerto Rico from the critical labor rules is being included in a package that would prevent the US territory from going bankrupt on May 1.
The Republican-backed legislation would raise the age limit to a minimum wage carve-out for younger workers, to 25 years-old from 20 years old. Currently, employers under US jurisdiction may pay workers under 20 years-old $4.25 an hour—three dollars below the federal floor.
A deal that included the deregulatory measure was expected to advance last week in the House Natural Resources Committee, but a vote on that package was canceled at the last minute by the panel’s chairman, Rep. Bob Bishop (R-Utah).
The procedure was delayed not due to Democrats’ objections over labor riders, but because Bishop feared it lacked sufficient Republican support. Conservative opponents are arguing that the legislation will lead to a taxpayer-funded bailout of Puerto Rico. Republican leaders counter that one will be more likely if the territory isn’t allowed to restructure its debt by the end of the month—something the legislation would allow.
“The bill is not going to change substantially,” Bishop said on Friday, when talking to reporters about intra-party talks over revisions. “But if we can tweak a few things to give people a comfort level, we will.”
The Hill reported on Monday that Bishop could schedule a vote on the deal “as soon as this week if negotiations move quickly.”
If Republicans come to terms and move to advance the deal, they will face push-back from Democrats. The White House has already said it won’t accept Puerto Rico debt legislation with the minimum wage deregulation.
“There is no reason that we should let a longstanding political argument about the minimum wage have an impact on the ability of the Puerto Rican government to pay its bills,” White House spokesperson Josh Earnest said on Friday. Earnest accused Republicans of “hoping that they can score an unrelated, ideological victory by holding something else hostage.”
Read more about the Puerto Rico debt crisis in The Sentinel here.
