Gov. Wolf Executive Order on $10.15 Minimum Wage Hurts Small Businesses
Ices out smaller companies that want to compete for state contracts
HARRISBURG (March 7, 2016) – The National Federation of Independent Business (NFIB) believes Gov. Tom Wolf’s executive order setting a $10.15 minimum wage for all state employees and state contractors will be very costly to small business.
"By mandating that businesses bidding on state contracts raise their minimum wage to $10.15, the Governor is preventing small businesses from entering the bidding process," said Neal Lesher, NFIB legislative director. Some small businesses simply cannot afford to pay inexperienced, entry level workers that much more per hour. This creates an unfair playing field that favors only larger companies. Yet more than half of the new jobs being created are coming from small businesses."
Gov. Wolf also called today for a statewide $10.15 minimum wage by all private sector employers. Yet, late last year the Independent Fiscal Office (IFO) concluded that an increase in the state’s minimum wage to $10.10 an hour would result in a loss of 31,000 jobs in Pennsylvania. The full IFO report can be accessed here.
"Like most government mandates on business, raising the minimum wage will have a deep and disproportionate impact on the small-business sector because small businesses tend to rely more heavily on entry-level, part-time workers and they are least able to absorb such a dramatic increase in their labor costs," said Lesher.
"Those most disadvantaged by increasing the minimum wage are teenagers and the unemployed. You can’t develop a career if you can’t get your first job. Increasing the minimum wage prices low skill workers out of the job market, particularly youth, robbing them of the experience of a first job where basic job skills are often learned," Lesher continued. "Numerous studies have shown the negative impact that higher wage floors have on teen employment."
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NFIB is the nation’s leading small business association, with offices in Washington, D.C. and all 50 state capitals. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists sends their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role n supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information is available online at www.NFIB.com/newsroom.