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States Debate Minimum Wage
07/ 25/ 2006


The minimum-wage debate reemerged on Capitol Hill when the House Appropriations committee approved a $2.10-an-hour increase—an increase that small-business proponents in Congress were able to reverse when House Majority Leader John Boehner (Ohio) vowed to block any floor vote on a minimum-wage increase.

However, many states, including North Carolina, California and Pennsylvania, already have considered—or plan to consider—minimum-wage increases.

Most recently, Wisconsin raised its minimum wage by 14 percent, and 12 more states will implement increases this year. California's Legislature approved automatic annual increases linked to inflation. Massachusetts is poised to enact the highest minimum wage in the nation: $8.25 an hour. As many as six states, including Ohio and Missouri, could include proposals for raising the minimum wage on their November ballots.

Where NFIB stands: NFIB continues to oppose mandatory wage increases because they hurt small businesses and employees. Wage hikes have failed as tools of social and/or economic justice: They haven't reduced poverty or narrowed the income gap, and they put a stranglehold on job creation.

Many small employers already face 15 to 20 percent increases in health-insurance premiums. A large minimum-wage increase not only adds to these labor costs, but it could also force employers to cut back on benefits that they need to attract and retain workers.


NFIB.com
Tell your lawmakers you oppose a minimum-wage hike. Go to www.NFIB.com/getinvolved for contact info.

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