As you know, as part of a
“grand bargain” bill passed in 2018, state lawmakers approved a provision to
gradually raise the state’s hourly minimum wage from $11 to $15 by 2023,
essentially creating a “living wage” in Massachusetts (DeCosta-Klipa, 2019).
The fear is that the
bigger picture is not being seen and that small businesses are not being
considered in the fight to create a living wage in Massachusetts. Many small
businesses cannot support a living wage. And if the businesses cannot support
the wage, what does that mean?
It means, lay-offs and
short staffing just to start. What was once expected of two employees will now
be expected of one because ownership cannot afford to keep that second employee
on staff.
It means a decline in
overtime for employees who currently rely on more than a 40-hour work week. A
company may be able to pay overtime at $19.13/hour but cannot support overtime
at $22.50/hr or $25/hr. Employees in these situations may be making more an
hour, but they will be taking home less in their checks.
How is a new business
supposed to get off the ground if they can’t afford to hire people to get the
business going?
An increase to a living
wage would mean increases across the board. All employee compensation would be
up for discussion.
Wage compression is a
significant issue and wage feathering comes into play. How would John feel if
he had been working at a company for 5 years and just started making $15/hour
and Susy was hired tomorrow to do the same job at $15/hour? John would be
insulted.
A living wage increase
would skew the numbers even more.
The numbers don’t lie. If
you hurt the business, you ultimately hurt the employee. If the business can’t
grow, then the employees can’t grow. If a business can’t hire more staff, then
those employees currently on staff will be expected to carry the load.
No one is saying that
employees don’t deserve to be fairly compensated. According to the same 2019
survey , 58% of small business owners pay their employees more than minimum
wage (Weston 2019).
Small business owners
understand what it’s like to do the dirty work or to be undervalued. Many small
business owners built their companies from the ground up. Before they could
afford to hire staff, many owners had to do the very jobs that their employees
now do. For this reason, many small business owners understand what fair value is
for the services which they are requesting.
The goal is to fairly
compensate employees while still allowing a business to thrive. If a business
is not allowed to thrive, no one will prosper.
Sources
DeCosta-Klipa,
Nik. “The minimum wage in Massachusetts is going up this week. Here’s what
you need to know.”
December 31, 2019. https://www.boston.com/news/local-news/2019/12/31/massachusetts-minimum-wage-2020#:~:text=The%20minimum%20wage%20in%20Massachusetts%20will%20increase%20again,another%20incremental%20increase%20kicks%20in%20this%20New%20Year.
National
Survey from SCORE and OnDeck Reveals Dilemma on Main Street. “Small Business
Owners Agree Minimum Wage Is Not a
"Living Wage;" Split on Whether It Should Increase.” December 12,
2019. https://www.score.org/news/small-business-owners-agree-minimum-wage-not-living-wage-split-whether-it-should-increase
South
Shore Chamber of Commerce. “Our Mission.” https://www.southshorechamber.org/about-
us.html
Weston,
Bridget. “Hike the Minimum Wage or Keep It As-Is? Small Business Owners Weigh
in
on the Debate.” December 26, 2019.
https://boston.score.org/blog/hike-minimum-wage-or-keep-it-small-business-owners-weigh-debate
Michael LaMarque was born and
raised in Holliston, MA. He attended Holliston High School and graduated with
high honors. In high school, he was captain of the football team and played
linebacker. He also played defense on the lacrosse team! He attended Bridgeton
Academy for prep school, where he continued to play football. He also continued
his academic excellence making the Dean’s list. He later attended Quincy
College, where he was on the Dean’s list once again, and earned his Associates
Degree in Natural Science. He went on to attend The University of Massachusetts
Boston, where he again was on the Dean’s list, and majored in Management.
Please
enjoy the following links of Michael LaMarque;
