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DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » "$15/hr will kill small b... » Reply #4

Response to SlogginThroughIt (Original post)

Fri Feb 26, 2021, 10:23 AM

4. Statistically not many

The largest percentage of the companies that pay at or near minimum wage fall into the restaurant, hotel, and some retail. Many (if not most) are franchises. So, you get into the argument is a Hardees franchise with 40 employees a small business? A Motel 6 franchise with 30 employees is it a small business? A convenience store franchise with 10 employees? Smaller regional grocery stores that have not been unionized might fall into this category as well. There are also the seasonal type places like pools, amusement parks, etc that typically pay close to minimum wage that fall into this category.

Small businesses that are not in the restaurant sector tend to pay better than minimum wage because they need trained, talented, and experienced individuals. Small tech start ups. Small architectural or engineering companies. Even a small machine shop or auto mechanic shop will pay more than minimum wage.

This may have an impact on local restaurants as some employees would get raises. They would have to raise prices. However, it could also lead to the elimination to tip wait staff. One of the main reasons we tip now is that wait staff are terribly underpaid. If that 15% was part of the menu price rather than an add on to hide labor costs...there could be an impact.

The reality is that if your business model requires underpaying your workers so that they do not make a living wage -- you are adding a lot of turnover costs to your business because most people will try to use it as a stepping stone to a living wage.

This the sky is falling argument is always used but the statistics in the past and current argument. But https://www.cnbc.com/2020/02/20/minimum-wage-increases-arent-a-job-killer-small-business-survey.html

said that the majority wouldn't lay people off.

Would some businesses lay people off and expect the remaining workers to pick up the slack ? Of course, that has been the US business model for about 50 years. Do more with less workers, and no matter how much productivity increases do not increase wages below the C-Suite. Woud it be wide spread outside of restaurants, chain stores, and hospitality -- probably not.

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SlogginThroughIt Feb 2021 OP
ProudMNDemocrat Feb 2021 #1
SlogginThroughIt Feb 2021 #6
nykym Feb 2021 #34
marble falls Feb 2021 #2
treestar Feb 2021 #3
AllaN01Bear Feb 2021 #7
SlogginThroughIt Feb 2021 #16
LineReply Statistically not many
JT45242 Feb 2021 #4
JI7 Feb 2021 #5
SlogginThroughIt Feb 2021 #9
Demsrule86 Feb 2021 #29
panader0 Feb 2021 #8
SlogginThroughIt Feb 2021 #11
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