Small business owners know that more than doubling the federal minimum wage would lead to increased labor costs and tough choices. They must either increase the cost of their product or service or reduce labor costs elsewhere. The reduction in labor costs would be achieved through reduced jobs, reduced hours, or reduced benefits.

NFIB opposes the Raise the Wage Act because 92 percent of NFIB members opposed an increase in the federal minimum wage to $15.00 per hour by 2024 and annual increases in subsequent years in a recent member ballot. In March 2021 the Raise the Wage Act was considered in the U.S. Senate as an amendment to the American Rescue Plan Act and the amendment was rejected in a vote of 58-42.