By Derrick DePledge
The National Federation of Independent Business, the small business advocacy group, will mobilize on Wednesday against a minimum wage increase.
The House Finance Committee is taking up a minimum wage bill Wednesday afternoon. There appears to be consensus among House and Senate leaders -- and President Barack Obama and Gov. Neil Abercrombie -- that a minimum wage increase is overdue. Hawaii has not increased the minimum wage since 2007.
But Melissa Pavlicek, the NFIB's state director, said in a statement that small businesses are still recovering from the recession.
Big corporations are starting to climb out of the recession, but small business has failed to recover because of a series of federal and state policies and proposals like SB 331. It should be called the Don’t-Hire-In-Hawaii bill, if accuracy means anything to the Legislature.
Big corporations do not have to absorb the cost of minimum wage increases because most minimum-wage jobs are offered by small businesses. The minimum wage directly affects small businesses because a large amount of their earnings go directly to pay for operating expenses, such as equipment, supplies, lease or mortgage, credit lines, inventory and employee wages and benefits. And, it’s vital to underscore that the vast majority of minimum-wage earners are young adults beginning their first jobs, those working a second job to make a little extra income, and some seniors looking for part-time work to augment their Social Security. They are the ones hurt most by minimum-wage increases, because employers must start with cutbacks of them.