A group of business organizations said today that they are concerned about raising the minimum wage because it would have negative consequences for small businesses in the state, Gannett’s Haley Viccaro reports.
Small business groups said an unbudgeted increase of the minimum wage would further impact organizations that are experiencing rising costs, high taxes and stagnant sales. They are urging the state Legislature not to accept Gov. Andrew Cuomo’s proposal.
“Raising the minimum wage on small businesses that can’t afford it will result in fewer small businesses, fewer jobs and a slower state economy,” said Mike Durant, state director for the National Federation of Independent Business, in a statement.
Cuomo proposed a 21 percent increase in the minimum wage from $7.25 an hour to $8.75 in his 2013-14 budget proposal. Assembly Speaker Sheldon Silver, D-Manhattan, proposed legislation to increase the minimum wage to $9.00 an hour and to index with inflation to mirror President Obama’s proposal.
“A lot of small businesses are treading water, unable to grow in current economic conditions,” said Jim Calvin, president of the State Association of Convenience Stores, in a statement. “Without sales growth, you can’t increase wages.”
Businesses that are calling on the governor and the Legislature to consider the negative impact of raising the minimum wage on small businesses include:
Automotive Recyclers Association of New York
Empire State Forest Products Association
Empire State Restaurant and Tavern Association
Manufacturers Association of Central New York
National Federation of Independent Business/New York
New York Association of Convenience Stores
New York Farm Bureau
New York State Builders Association
New York State Hospitality & Tourism Association
Northeast Ag and Feed Alliance
Northeastern Retail Lumber Association
New York Alliance for Environmental Concerns
New York State Bluestone Association
New York State Motor Truck Association
Support Services Alliance