Gov. Wolf Executive Order on $10.15 Minimum Wage Hurts Small Businesses

Date: March 18, 2016 Last Edit: March 21, 2016

Ices out smaller companies that want to compete for state
contracts

HARRISBURG
(March 7, 2016) –
The National Federation of
Independent Business (NFIB) believes Gov. Tom Wolf’s executive order setting a
$10.15 minimum wage for all state employees and state contractors will be very costly to small business.

“By mandating that businesses
bidding on state contracts raise their minimum wage to $10.15, the Governor is
preventing small businesses from entering the bidding process,” said Neal
Lesher, NFIB legislative director.  Some
small businesses simply cannot afford to pay inexperienced, entry level workers
that much more per hour. This creates an unfair playing field that favors only
larger companies. Yet more than half of the new jobs being created are coming
from small businesses.”

Gov. Wolf also called today for a
statewide $10.15 minimum wage by all private sector employers. Yet, late last
year the Independent Fiscal Office (IFO) concluded that an increase in the
state’s minimum wage to $10.10 an hour would result in a loss of 31,000 jobs in
Pennsylvania. The full IFO report can be accessed here.

“Like
most government mandates on business, raising the minimum wage will have a deep
and disproportionate impact on the small-business sector because small businesses
tend to rely more heavily on entry-level, part-time workers and they are least
able to absorb such a dramatic increase in their labor costs,” said
Lesher. 

“Those
most disadvantaged by increasing the minimum wage are teenagers and the
unemployed. You can’t develop a career if you can’t get your first job. Increasing
the minimum wage prices low skill workers out of the job market, particularly
youth, robbing them of the experience of a first job where basic job skills are
often learned,” Lesher continued. “Numerous studies have shown the negative
impact that higher wage floors have on teen employment.”

NFIB also responded to an opinion piece about a statewide minimum wage by the Governor’s Press Secretary. Click here to read our response. 

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