DES MOINES (March 6, 2017): The National Federation of Independent Business (NFIB) testified this evening in front of the House in favor of HF295 which if passed will preempt municipalities from locally increasing the minimum wage in excess of the state’s rate.
“Proponents of increasing the minimum wage often cite their desire to improve the lives of workers however what they fail to understand is that those very people whom they advocate for could easily lose their jobs if labor costs force small business owners to lay people off,” according to NFIB Iowa State Director, Matt Everson. “Preemption at the state level is vital to ensuring that municipalities do not complicate employing Iowans. The purpose of the minimum wage rate was never intended to feed entire families, it was designed as an entry level training wage, and this bill protects that notion.”
Everson testified on behalf of the over 11,000 members of NFIB in Iowa. Randy Bradley, an owner in the Burger King franchise in Wapello County, was referenced in Everson’s remarks regarding the impact that failing to pass preemption would have on the small business community.
“Randy has been in business for almost 30 years in Iowa. Not only does he know first hand how challenging the day to day operation of a business can be, but he values his employees as an asset and strives to have the strongest workforce possible,” continued Everson. “Raising the minimum wage will force employers like Randy to have to make very difficult choices. Increases in labor costs will mean either reducing hours for employees or worse yet, eliminating positions. Passing preemption will protect small business owners from inconsistent labor costs while shielding employees from work reduction or layoffs.”
