Small Business Owners Concerned About Rising Minimum Wage

Small Business Owners Concerned About Rising Minimum Wage

In recent months, the topic of raising the minimum wage has grown more prevalent in conversations among lawmakers at both the state and federal levels, and this trend certainly has a number of small business owners worried about the ways in which their bottom lines might be impacted. Now, a new battle might be waged over this issue in New York State.

A number of small business advocacy groups recently came out against New York lawmakers’ plans to raise the minimum wage, and instead asked for alterations to current rules and regulations that might be restrictive to the growth of such companies, according to a report from the Albany Business Review. Among the changes they asked for was a tweak to the state’s proposed plan that would place a tax on the premiums employers pay on health insurance as a means of funding the state’s coverage exchange going forward.

“Small businesses, especially in the construction industry, continue to find themselves subject to burdensome and excessive regulations which drive the cost of business up and jobs out of state,” said Mike Elmendorf, president and CEO of the Associated General Contractors of New York State.

Thinking about the future
These efforts were part of an event specifically designed to give small business owners and advocacy groups needed face time with state lawmakers, and the general consensus was that the meetings were productive, the report said. Both sides made their cases for why their plans are likely to help small businesses operating within the Empire State improve.

The issue of raising the minimum wage is certainly one that could be a concern to many small business owners, but there are two sides to the argument. On the one hand, many entrepreneurs worry about the impact such a move would have on their bottom lines, but on the other, it’s generally believed that if more people are making more money for the work they do, they’re going to spend it rather than save it. Consequently, that could be a rising tide that lifts all ships, and ends up being a good thing for these companies.

Certainly, owners will want to make sure they’re positioning themselves well to deal with whatever decisions are made at the state or federal level going forward. This could include shoring up their bottom lines by finding more affordable small business insurance policies, including those for general liability insurance, to potentially save thousands annually.