This is an open letter to Delaware legislators:
Minimum wage just climbed up another rung to the goal of $15 per hour for workers. Legislators may think: “Finally, a living wage for those in lower-paying jobs.” This may sound like a good thing, especially to anyone making under that amount, but unfortunately, there is a downside to this, as well. When this legislation was passed and signed by the governor, the minimum wage was $13.25. This was not a living wage, and nor is the final raise to $15/hour, as promoted. I’ll speculate that most, if not all, of the legislators that voted yes to this bill never had to make a payroll.
Legislators may think: “So, what’s the big deal? You’ve owned a business for decades; you must have the money.” But what nonbusiness owners don’t know about is all the tentacles of government that tell you how you must spend your money.
As a business owner for over 40 years, I can explain how these mandatory pay increases have and will affect my business, my workers and my customers. Until now, I have never paid the “minimum wage” (with the exception of tipped persons). I have always paid a bit more, with the expectation of a bit more than minimal effort. That has worked in the past, but I’m not sure how it will work going forward. I have three high school-age employees, who were making $12/hour. They all got a raise Jan. 1, and they are happy about that. But my most experienced employees, who have been with me for 12-15 years, won’t be getting an increase in their hourly rate this year because the least experienced employees with the least corporate knowledge received the increase due to this government mandate. What will the high schoolers do with their increase? Who knows? But it won’t be needed for a “living wage.” On the other hand, I’m 100% sure that my most knowledgeable, longtime workers are facing huge increased expenses in electric, food, insurance, auto repair, auto purchases, fuel and more. That extra $1.50/hour that they won’t be getting equals an extra $3,100 in their pockets, and that could help, a lot! But which employees receive what amount was decided by the government, not me, the business owner, and nor will it be decided by other business owners in Delaware. And who is the largest employer in Delaware for which we, the taxpayers, have to cover their payroll? Yep, the state of Delaware is the largest employer in the state.
Of course, all those increases and more will affect my business. What’s an owner to do?
“Deal with it” is our state government’s answer. Well, I will, but the cost will ultimately be passed to the customer and to the workers, with less hours available and fewer raises or bonuses. To my legislators and governor, before you pat yourselves on the backs for raising the minimum wage, please let the free market decide how to spend our hard-earned money! You might feel good, but most of us will have to pay the price. The folks who earned the pay increase deserve the money, not necessarily the employees that the government deems more worthy. I am happy to employ workers with little experience, but I may not be able to afford to employ high school employees in the future if I cannot pay a fair market wage to them. That is another unintended consequence of government interference and mandates.
“Government is not the solution to our problem; government is the problem” — Ronald Reagan.
Paul Buchness
Reader reactions, pro or con, are welcomed at civiltalk@iniusa.org
