Private closed-door deal between Governor and labor unions is bad for small business
SACRAMENTO, Calif., March 28, 2016 – Ahead of the expected announcement of a $15 per hour minimum wage deal between the Governor, labor unions and legislative leadership, NFIB/CA reaffirms its opposition to this onerous burden on small business.
“Small businesses in California are still struggling to cope with the 25% minimum wage hike over just the past two years. Proposing a 50% increase on top of that is reckless and ignores serious negative consequences including job loss and increased costs to job creators, senior citizens, and non-profits,” said NFIB/CA State Executive Director Tom Scott. “It is no surprise that CEO Magazine has consistently ranked California dead last for its business climate; raising the minimum wage to the highest in the nation is the last thing Sacramento should do to job creators in this state.”
Tom Scott added, “It is especially troubling that this minimum wage deal was crafted behind closed doors with no public input or transparency. It is clear Sacramento is broken when sweeping proposals such as this are crafted in the dark and quickly moved through the Legislature, ignoring the voice of our 22,000 small business members and others.”
Despite a change of opinion by the Governor, it is important to remember that his Department of Finance estimated a state increase to just $13.00 per hour would increase costs to various state agencies by at least $4.7 billion over three years—in addition to fiscal impacts on individuals and businesses. Governor Brown also commented, “Raise the minimum wage too much and you put a lot of poor people out of work…There won’t be a lot of jobs. It’s a matter of balance.”
99.2% of businesses in California are small business, many of which would not be able to continue operating at their current level with a $15 state minimum wage. Seattle is already seeing significant job loss and stagnation following their $15 minimum wage hike, according to the U.S. Bureau of Labor Statistics. Representing the largest number of small businesses in California, NFIB opposes raising the state minimum wage to $15 per hour.
For more than 70 years, the National Federation of Independent Business has been the Voice of Small Business, taking the message from Main Street to the halls of Congress and all 50 state legislatures. NFIB has 350,000 dues-paying members nationally, with over 22,000 in California. NFIB annually surveys its members on state and federal issues vital to their survival as America's economic engine and biggest creator of jobs. To learn more visit www.NFIB.com/california