St. Paul – State Representative Tony Albright (R-Prior Lake) announced he will oppose House File 92, a bill to drastically increase the state’s minimum wage. Albright serves on the House Jobs and Economic Development Committee and expressed concern for the bill’s impact on jobs, small businesses, and unemployment among young people.
“HF92 is the last thing our communities and businesses need right now because it will raise the cost of doing business in Minnesota and also make jobs harder to come by for young people,” Albright said. “Raising the minimum wage is a flawed idea that will have a negative effect on employment.”
Rep. Ryan Winkler is the chief author of HF92 which raises the state’s minimum wage from $6.15 to $10.55 an hour by 2015, a 40 percent increase, and even mandates that no business be allowed to make layoffs or decrease hours to make up for the increased labor costs. 60 percent of all Minnesotans making minimum wage are ages 15 to 24 and one-third also receive overtime, tips and wages above and beyond the minimum wage.
“An increased minimum wage does nothing to drive innovation or support small business in Minnesota,” Albright said. “A drastic increase in minimum wage requires small businesses that operate at low margins to divert resources into increased labor costs instead of expanding their business, opening a new location, or invest in innovation.”
Many small businesses, especially those in the restaurant industry, fear that the change will put them out of business or force significant staffing cutbacks. Non-profits, groups that serve people with disabilities, nursing homes, and other businesses with fixed costs and minimal or no profit margin will suffer the most. Additionally, studies show for every 10% increase in the minimum wage, there is a 1-3% decrease in teen employment.
Several discussions and votes on minimum wage legislation could come to the House Jobs Committee as soon as next week. The Winkler bill (HF92) was passed on a party-line vote by the House Labor and Workplace Committee Thursday morning.
Albright can be reached by phone at (651) 296-5185. He can also be contacted via e-mail at rep.tony.albright@house.mn, or via U.S. Mail at 387 State Office Building, St. Paul, MN 55155.
###