Letter to the Editor: Minimum wage increase will devastate many Delaware small businesses

Small business owners are urging the legislature to roll back a bill that would devastate many “mom and pop” shops. There’s been an effort by lawmakers in Dover to increase the state’s minimum wage to $15 per hour. This push by out-of-touch legislators adds insult to injury for small business owners, regardless of size, and after more than a year of crushing COVID-19 shutdowns, could be the final straw that shuts down even more hard working and job-creating small businesses.

Delaware’s economy depends on tourists, yet some small business owners on our beaches can’t hire workers. Here’s the problem: If small business owners can’t find employees, they are forced to raise wages. That, in turn, leads to fewer hours for those employees and increased costs for the customers who frequent those businesses.

Here’s the truth: Raising the minimum wage in our state will actually lead to many jobs getting eliminated. This proposal increases the state’s minimum wage by 62% in just four years. For small business owners, who plan their costs down to the penny, that equals a massive cost increase. Smaller businesses such as retail shops and restaurants have a very low-profit margin. For many, it’s under 2%. One option is to raise prices, but will Delaware customers pay that added expense?

Small business owners are warning lawmakers: Raising the minimum wage also raises the chances of many “mom and pop” shops going out of business.

Mike O'Halloran

Delaware director for the National Federation of Independent Business (NFIB)