A recent survey by the U.S. Chamber of Commerce found that many small
businesses believe the recent increase in the federal minimum wage could have
an effect on business decisions such as increases to staffing and product
According to the survey, nearly 30% of the 170 respondents
said they may have to raise their prices in order to cover the increase in
the minimum wage. Over 20% said they will not be growing their staff as
planned prior to the minimum wage increase. Nearly 50% of these companies
said they have experienced other, nonwage-related cost increases as a result
of the revised minimum wage.
The survey also found that 85% of
respondents reported that they were already paying above minimum wage before
the government passed the three-step increase, and 59% said the $4.8
billion in tax cuts that were passed with the minimum wage increase
will not help them absorb the cost of the increase.
Source: US Chamber of Commerce