How a Minimum Wage Hike Would Impact Indiana Small Business Owners

Date: February 03, 2015

How a Minimum Wage Hike Would Impact Indiana Small Business Owners

Minimum wage increases were a hot debate item nationwide in 2014, and now the issue is on the table in Indiana with Senate Bill 41, which would increase the state’s minimum wage to from $7.25 to $10.10 per hour.

NFIB/Indiana strongly opposes this bill.

“Raising the minimum wage would have a very negative impact on Hoosier small businesses,” says Barbara Quandt, NFIB’s Indiana state director. “It would be a job killer, pricing many young people out of the job market. Most minimum wage employees are part-time workers who are under 25. I wonder who is going to hire an inexperienced teenager and pay them $10 to $15 per hour, when they can hire a mature person with work experience for that same money? Additionally, raising the minimum wage would raise the price of goods and services provided by small businesses.”

For Randy Ballinger, owner of Walnut Creek Golf Course in Marion, Ind., a minimum wage hike would cause a domino effect of problems, including staff-wide cost increases and hiring changes.

“The problem with the raise in minimum wage is that it is not a raise just for the minimum wage people; it will be a raise for all employees because the $13-$15 employees will expect the same raise as minimum wage employees,” Ballinger says. These cost increases add up quickly, especially for small business owners who operate on tight profit margins.

“The golf business is very tough right now, so it will be impossible to pass the increase on to the customer and will cause several golf courses to close,” Ballinger says.

Ballinger, whose golf course has been in business for 45 years, adds that while he currently gives a lot of kids their first job experience, the higher minimum wage would force him to remove high school-age workers from his hiring process.

NFIB/Indiana will be working hard to make the case that a minimum wage increase will hurt more than help, and Quandt says SB41 will have an uphill climb with so many small business owners elected to the Indiana General Assembly.

“Our NFIB member legislators know that raising the minimum wage will kill some of the momentum we’ve seen in Indiana’s improving economy,” Quandt says. “Indiana is becoming a great place to start and grow a business. Proposals such as raising the minimum wage could begin to reverse the terrific progress we’ve made in the Hoosier State.”

How would a minimum wage impact your small biz? Tell us in the comments section below.

Related Content: Small Business News | Economy | Indiana

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