"If the lowest-wage earners are increased to $15 per hour, every one of my employees currently making $15 per hour or more would, justifiably, want their hourly rates increased commensurate with their skills, experience and tenure above the new $15 per hour employees." Chamber of Commerce Small Business Council, said his company's lowest-wage earners currently make $11 per hour. Ian MacLean, the owner of Highland Landscaping in Southlake, Texas, and chair of the U.S. They cannot pay shift managers the same rate as entry-level workers."
"In order to attract and retain the workers they need, employers have to maintain a hierarchy of wages based on experience and productivity. Greszler added that even employers of middle-wage workers may be subject to wage pressure. "Responses to a $15 federal minimum wage will vary depending on their industries and unique circumstances, but their options include eliminating positions, cutting employee hours, reducing benefits, automating or outsourcing jobs, or closing down." "Employers cannot have their labor costs increase by up to 100 percent without significant disruptions to their operations," said Rachel Greszler, a research fellow at the Heritage Foundation in Washington, D.C. Opponents of increasing the minimum wage to $15 argue that it will burden small businesses-which make up 99 percent of all employers-with increased labor costs and result in layoffs, expediting automation or going out of business. Phillips said he believes there are ways to "mitigate the negative impacts of such a policy while maximizing the positive impacts of raising wages for millions of Americans." "Many said they would have to close their doors immediately, and others said they would have to choose between shutting down or replacing their workers with automation." "Small-business owners have told me that increasing the minimum wage will have a disastrous impact on them," she said. Elizabeth Ann Van Duyne, R-Texas, said she couldn't think of anything more devastating to small businesses as they try to recover from the economic effects of the pandemic. His restaurant-like all restaurants-runs on thin margins during the best of times, and he is deeply concerned that a $15 minimum wage will mean he will have to cut jobs if he hopes to stay open." "Like so many businesses which rely on public gathering to succeed, his is barely hanging on. Phillips said he hears concerns from constituents like the owner of The Original Pancake House in Plymouth, Minn. "Unfortunately, the same study also projects that this policy could cost 1.4 million jobs … and the loss of some small businesses." "According to the Congressional Budget Office, the will likely raise wages for 27 million Americans, raise almost a million people out of poverty and increase aggregate wages for low-wage workers by over $300 billion over the next decade," he said. Dean Phillips, D-Minn., during a recent hearing on the issue called by the House Committee on Small Business. The dilemma facing federal lawmakers was expressed by Rep.
Just over 1 million workers earned wages that were at or below the minimum wage in 2020, according to the Bureau of Labor Statistics. The federal minimum wage was last raised-to $7.25-in 2009.
The introduction of the legislation resets the stage for debating the challenges and benefits of raising the minimum wage and the impact the policy would have on small employers. But advocates of the Raise the Wage Act say that lower-income workers have also been struggling during the pandemic and the federal minimum wage is long overdue for an increase. That's why some believe this is an inopportune time to pursue raising the federal minimum wage to $15 an hour by 2025, as Democrats in Congress have proposed. Small businesses have been especially hard hit during the COVID-19 pandemic.
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