Georgia lawmakers were unable to raise the state’s minimum wage in this year’s legislative session, prompting concerns in the small business community that the issue will return in 2016.
A minimum wage debate will be back in 2016, and NFIB is arming itself for the fight against increases to the rate, says NFIB/Georgia state director Kyle Jackson.
Three bills from the previous legislative session were flagged by NFIB as concerning to small business interests. House Bill 272 and its counterpart in the Senate aimed to increase the state’s minimum wage to $10.10 per hour. House Bill 8 went even further, proposing to raise the minimum wage to $15 per hour.
These bills were not approved this year, but similar measures are expected to appear in the next legislative session.
“While an increase in the minimum wage is unlikely, NFIB/Georgia will be closely monitoring the situation and prepared to fight should bills start moving,” Jackson says.
Minimum wage in Georgia has not changed since 2001, when the rate was raised to $5.15. However, those who work for minimum wage in Georgia earn $7.25 per hour, which is the federal rate.
A minimum wage hike is a big concern for small business owners, who often have to compensate for these higher costs by reducing benefits and employment or by raising prices.
Government data show that even a 10 percent bump in minimum wage rates can negatively impact small business employment, according to a report published in 2006 from the Employment Policies Institute. For low-skilled workers, the decline in employment is even greater when associated with a minimum wage rise.
“These findings provide consistent evidence that minimum wage increases result in a significant decline in retail and small business employment,” the EPI said of the research.
