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Posted: Thursday, 06 March 2014 7:11AM

Small business owners oppose minimum wage hike



Small business owners in Louisiana say they oppose any legislation that would raise the minimum wage. 

The 2014 legislative session is to start Monday and there are bills filed that would raise the state's minimum wage to 10 dollars an hour. Louisiana director of NFIB Dawn Starns says they surveyed their members and  90 percent of them said "no" to raising the minimum wage.

"The mandate to increase the minimum wage so significantly would have a very immediately and huge impact on their labor cost and therefore their bottom line and it would certainly change their dynamic on how the do business," Starns says.

Starns says if the minimum wage does rise, small businesses will hire older and more experienced workers and employers won't be able to hire nearly as many employees.

"You're going to be forcing businesses to pay more and they are going to be looking for people with more experience. That kind of cuts off  the opportunities for the people who are those newcomers to the workforce who are trying to gain skills and learn the ropes," Starns says.

Starns says employers would have to figure out how to offset the price of increasing wages with the price of their goods and services. She says small businesses only have so much money and the increase could possibly lead to some layoffs.

"An increase were to go into effect, they would probably have to cut at least one of those people to pay for the minimum wage for the others, the minimum wage increase, associated with labor cost, for the others," Starns says.

Filed Under :  
Topics : Business_FinanceLabor
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Locations : Louisiana
People : Dawn Starns
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