Virginia Small Business Defeats Minimum Wage Increases

Date: March 31, 2015

Efforts to raise the minimum wage by Democratic legislators in Virginia have been unsuccessful in 2015.

As states raise minimum wage rates one by one, Virginia lawmakers have stood their ground to protect small business owners.

Attempts by Democratic legislators in the Virginia General Assembly to raise the state’s minimum wage have failed, at least for now. The minimum wage in the Commonwealth is on par with the federal rate of $7.25 per hour as of now, though there was much focus on raising the rate at the start of the 2015 legislative session.

Giant retail company Walmart announced it will increase wages for thousands of employees over the next few years. As the company is the second largest employer in Virginia, the decision could bring the minimum wage debate back into the spotlight, especially as the state legislative election cycle intensifies.

Walmart will increase wages to $9 per hour in late 2015 and $10 per hour in 2016 for most starting positions. Management positions will see wages jump to $13 per hour this year and up to $15 in 2016.

The minimum wage in Virginia has not increased since 2009, though legislative attempts have sought to bring it up to $8 per hour, and a boost to $10.10 per hour by 2017. One bill would bring the minimum wage up to $15.15 per hour in 2015 if approved. The bill was tabled in late January.

For Virginia businesses, raising the minimum wage could have devastating effects, hitting small business owners the hardest.

“This legislation disproportionately hits small business owners,” NFIB/Virginia state director Nicole Riley says. “Many have told us that it would lead to them hiring older and more experienced workers and would not help those who the minimum wage was for—the young, and those with less skills and experiences.”

NFIB has advocated against minimum wage increases in Virginia and throughout the country.


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