12, 2014) – The National Federation
of Independent Business (NFIB) today urged members to consider the impact
on New Hampshire’s competitive position before they vote for an increase in the
state minimum wage.
“New Hampshire has prospered because of its
reputation as one of the best states in America to do business,” said NFIB State Director Bruce Berke. “Raising labor costs arbitrarily for small
businesses would chip away some of our advantage.”
The House is expected this afternoon to vote on a
bill to set the state minimum wage at one dollar above the federal level and
then raise it every year, automatically based on inflation.
“The real danger in this bill is the automatic
inflator,” said Berke. “Predicting
inflation is almost impossible and this bill would make it impossible for small
businesses to anticipate their expenses year to year. And by raising the rate every year it
guarantees that some small businesses will never catch up with the increasing
cost of labor.”
Berke noted that a dollar increase in the minimum
wage would force small employers to spend almost 14 percent more for entry
level labor and inflate wages all the way up the pay scale.
“There are very few small business in New
Hampshire that can count on a 14 percent increase in sales this year. Even fewer can count on an increase in sales
every year in perpetuity,” he said. “Businesses
that cannot absorb higher labor costs will find a way to reduce labor.
“They’ll cut hours, cut benefits, eliminate
positions or find ways to replace workers with technology,” he continued. “The best way to increase wages is to create
the economic conditions under which workers are in higher demand. We need to grow the economy, not punish
Learn more about NFIB at www.nfib.com.