NFIB: On opposition to the minimum wage hike

MADISON, Feb. 4, 2020 – A proposal that would increase the state’s minimum wage to $15 per hour is strongly opposed by NFIB in Wisconsin, the state’s leading advocate on behalf of small business.

“Raising the minimum wage is more about the politics of the moment than about the realities of the economy,” said Bill G. Smith, State Director in Wisconsin. “A government mandate that increases the wage rate for entry level workers may score political points, but it will have a serious negative impact on the ability of our small member employers to provide meaningful job opportunities for a vital share of our workforce.”

Small business would feel the brunt of this legislation. When employers face government mandated increases in wages, they face tough choices. They must increase the cost of their products or services or reduce labor costs.

In New York City, a study by The Hospitality Alliance found 75% of the more than 300 respondents reported they will reduce employee hours as a result of the minimum wage hike to $15 per hour, while 47 percent said they will eliminate jobs.

“And when all is said and done,“ said Smith “raising the minimum wage actually puts very little disposable income in the pockets of individual workers. To the contrary for those who are the victims of fewer hours or lost job opportunities, earned income will be lost.”

Smith urged legislators who are serious about improving the lives of working families to focus more on creating an environment where small businesses can grow and create good paying jobs rather than wage and benefit mandates by the government.