Raise the Wage Act Approved in House
WASHINGTON, D.C., July 19, 2019 – A hundred and fifty small business owners from around the nation were in Washington, D.C. to meet with their federal representatives to ask they vote no on the Raise the Wage Act. A floor vote took place in the House of Representatives on Thursday, July 19 on that bill, H.R. 582. The Raise the Wage Act increases the national minimum wage to $15 over five years and automatically increases that threshold every subsequent year.
The Raise the Wage Act will eliminate hundreds of thousands of small business jobs. The non-partisan Congressional Budget Office confirms that this legislation will damage the small business economy, estimating that 1.3 million workers will become jobless and total real income will be reduced by $9 billion by 2025.
NFIB sought relief in the Maine legislature for small employers who are struggling with the state’s current $11 wage, which goes up by a dollar to $12 in January. The federal bill will be even more difficult for small business owners in the Pine Tree State.
“Dozens of small business owners testified in Augusta over the past two years about how they are struggling to cope with the mandated rate of wages in our state,” said David Clough, state director of NFIB in Maine. “They say they are being forced to make very difficult decisions due to rising labor costs which are impacting employees, business hours, prices, and the ability to serve their customers and remain competitive.”
“Even private social service agencies have testified alongside small business owners, that they too will have difficulty paying these higher wages,” added Clough. “Those non-profits say they can’t afford it and will require higher reimbursement rates from government.”
Small businesses would feel the brunt of the impact of the Raise the Wage Act. According to NFIB research, 57% of all private-sector job losses would take place at companies with fewer than 500 employees. When employers face steep increases in wages, they face tough choices. They must increase the cost of their product or service or reduce labor costs elsewhere. The mandate will lead to cuts in jobs and employee hours or reduced benefits.
Contact:
David Clough
State Director of NFIB in Maine
