SMALL BUSINESS BRACING FOR WAGE BOARDS PREDETERMINED DECISION
ALBANY (June 22, 2015): Today, Governor Cuomo’s latest
assault on small employers masked in the form of a wage board has convened to
determine how much employers of “fast food” establishments should be forced to
pay their employees. The National Federation of Independent Business (NFIB)
will submit their official testimony today and has previously called out the
wage board for what appears to be preconceived recommendations on increasing
wages and the detrimental impact their decision will have on small business in
New York.
“This wage board is working under an aggressive timeline
without even a hint of advocating for small business. We all know that
this Governor does not put commissions in place unless they have a
predetermined outcome, so it’s safe to surmise that this wage board will
increase the minimum wage on “fast food” restaurants, potentially capturing
thousands of small businesses,” said NFIB/NY State Director Mike Durant.
“The board is defining a fast food establishment as a limited service
restaurant where customers order at the counter and pay in advance.
Considering the various food establishments we all visit where you order and
pay for your food before receiving it, the recommendations will no doubt hit
the smallest of employers.”
From delis to pizza and ice cream parlors, thousands of
small businesses across New York will feel the impact of any decision to
dramatically increase the minimum wage and be left choosing between increasing
costs to customers or decreasing the hours of their hard working
employees. Corporate owned entities will have more options like
converting to touch pad ordering systems or robotic hamburger makers, and more
jobs will be lost while motivation to achieve advanced education or training
will disappear.
“At $15 an hour, a 40 hour work week will equate to $31,200
annually for an entry level job requiring limited skills and no experience,”
continued Durant. “What message does this send to a preschool teacher
whose average starting salary is $23, 000 or a substance abuse counselor that’s
making $30, 000? Where is the incentive to pursuing either of these admirable
and necessary careers?”
While NFIB would prefer that economic development programs
focus on increasing economic opportunity for all, the Governor’s agenda seems
to prioritize future generations aiming for nothing more than an entry level
job.
“The Governor should be focused on helping small business
sustain and grow in New York, and instead is aiming at shutting them
down. Ultimately, this entire charade is political and corporate
warfare. Assuredly the corporate owned restaurants will adjust, but the
local pizza place that used to sponsor your child’s softball team will be
converted into yet another vacant commercial building thanks to this blow dealt
by a Governor without a plan,” concluded Durant.
