The New Jersey Business & Industry Association submitted oral and written testimony opposing the $15 minimum wage bill today to two legislative committees. The testimony included letters from member businesses who spoke of dire consequences for their operations should the bill in its current form become law.
In the past week, NJBIA has solicited 3,000 letters from business owners and concerned workers and citizens asking legislators to vote no on A-15/S-15.
A small sampling of the letters can be found here.
“The responses we have received from the business community have been passionate and it’s critical that legislators recognize their concerns,” said NJBIA President and CEO Michele Siekerka, who testified before the Senate Budget & Appropriations Committee today. “The theme over many of these stories was concern about compression for those already making $15 an hour, the impact on Medicaid and increased costs to state government. Companies are challenged in their inability to raise costs at the retail level and, therefore, will need to cut costs through cutting hours and benefits.
“There is also the concern about the overall impact a $15 minimum wage will have on their ability to provide other benefits like healthcare coverage. Many of our members are also calling for an offset for workforce training since many are challenged to hire a trained workforce as it is.
“And, yes, some of them say they will either close or relocate. We take them at their word and our legislators should, too.”
Before the Assembly Appropriations Committee today, NJBIA Vice President Michael Wallace said that moving the $15 minimum wage bill “without an economic analysis is irresponsible.”
“We are 10 years out from the last recession and most economists will tell you that the next recession will hit within the next two or three years,” Wallace said. “And according to Standard & Poor’s, New Jersey is one of 15 states at an elevated risk for fiscal distress during the next recession.”
Wallace’s full written testimony can be found here.
A waste of taxpayer money. The socialists in Trenton have their minds made up. It’s a done deal and the base to whom they pander will be satisfied.
This state will self destruct by 2024.
Politicians are missing the fact that $15 will only eliminate jobs for part timers and summer help. My kids with little or no experience have been able to get retail and food service jobs for the past few summers.
Yes it would have been nice for them to make $15 with no experience but tell that to ice cream shop owner who is barely getting by as it is. The large companies that have resources will increase automation. The small guys will just close. Any downtown has plenty of empty storefronts and businesses.
The market place should be dictating wages. If a job making 7.25, 8.00 or 10.00 etc. suits somebodies needs it should be there for them to take.
Unfortunately the moving of the minimum wage will result in hours reductions of businesses, hour cutbacks of staff, increased prices for the consumer and a further exit of some businesses out of New Jersey. Peers of mine have told me they are not going to expand in New Jersey and are looking for another State that is FAIR to employers. That is a strong statement as small businesses drive economies, provide jobs for all and support communities. Many politicians think of business as Microsoft, Audi, VW companies that increase their product and still get it purchased. It’s not the same for small businesses that live on percentages-the consumer won’t pay 16.00 for an omelette at a pancake house or 250.00 for a faucet change from Joe the plumber but small business will have to increase prices to stay in business under the New New Jersey- New Jersey and You no longer Great together.
It shouldn’t be an either-or position. This situation is not black and white and it needs to be addressed from a community/employee standpoint as well as a business/company standpoint. I find it unimaginative, lacking insight and innovation for a fair and balanced solution. I think Seattle has implemented the fairest, along with NY/NYC
“Seattle, Washington: $15.45 an hour for businesses with 501 or more employees that don’t offer medical benefits; $15 an hour for businesses with 501 or more employees that do offer medical benefits; $14 an hour for businesses with 500 or fewer employees that don’t offer medical benefits; $11.50 an hour for businesses with 500 or fewer employees that do offer medical benefits”
Read more https://money.cnn.com/2017/12/29/news/economy/2018-minimum-wage-increases/index.html
Time to stop the debate stuck in various corners on this issue and collaborate with financial experts/CPAs and a creative, fair and equitable solution that’s good for the workforce and good for business. It can be done.
Nichelle,
With a career in N.J. retail food and restaurants, your suggestion makes the most sense to benefit our associates and our operators, a version of the Seattle Plan. Let’s bring our citizens to the ‘pursuit of happiness’ experienced by most of the developed nations of the world. Jack O’Connor
I currently hire 30+ untrained teenagers in my small business. They generally have no prior work experience. $15 per hour for a head of a household trying to make ends meet for a family is one thing. $15 per hour for a 15 year old working a first job, with no work experience, just doesn’t make sense.
I have a small business that employees 150 workers. Many of these workers are unskilled. Our company sells our finished products throughout the Northeast. Therefore we compete with national companies where minimum wage increase is not on the table. It is a very competitive industry. By raising the minimum wage we will not be competitive and as a result will have a very difficult time competing. We provide 11 days of paid vacation and a very generous health care plan among other benefits. We’ve done the math and at $13.00 we will be forced to shut the doors after over 90 years in business. We suggest NJ follow Seattle’s approach.
All of this will devalue real estate driving all investments down. Many empty buildings now. Total socialism.