The current draft of the Labour Relations Bill, 2015 does not include minimum wage. However, Employment Minister Tara Rivers has said that recommendations from the Minimum Wage Advisory Committee will be added to the bill once the public consultation period on the draft is completed.
The Minimum Wage Advisory Committee has recommended a $6 an hour minimum wage and a $4.50 hourly minimum wage for workers who receive gratuities, room and board or other such benefits.
The committee estimated that the minimum wage would apply to almost 6,000 employees in the Cayman Islands. Over a third of those employees (2,600) are domestic workers.
A report by the committee estimates that around 600 jobs would be lost if the minimum wage proposal is implemented.
Lemuel Hurlston, chairman of the Minimum Wage Advisory Committee, told the Cayman Compass in May that the minimum wage would most affect small businesses with fewer than five employees. He also said the job losses would affect work permit holders, not Caymanians and permanent residents.
In order to implement a minimum wage, several legal changes would be required, some of which are already included in the draft of the Labour Relations Bill. One such change included in the draft legally recognizes households with domestic workers as workplaces.