For Release — February 14, 2013
The Business Council Opposed to Speaker Silver's Proposed Minimum Wage Hike
ALBANY— "We need to improve New York's economy and create good-paying private sector jobs. Raising the minimum wage will not do that. It would increase the cost of doing business for affected employers. If the state were to increase the minimum wage to $8.75 as Governor Cuomo suggests, it would add an additional direct cost of nearly $3000 for each full-time minimum wage employee, plus indirect costs caused by 'wage compression,' as wages are adjusted for higher earning employees. Under Speaker Silver's plan, this cost would increase to more than $4,000 for each full-time minimum wage employee.
To meet these costs, employers will have to eliminate jobs or reduce workers' hours, raise prices, defer investments or reduce profits - none of which promotes economic growth. Cost increases will reduce the number of entry level jobs for persons with the least skill and experience, whom the proponents of a higher minimum wage purport to help.
Raising the minimum wage will impact retailers, tourism, small businesses, farms and not-for-profits and reduce job opportunities.
Imposing new costs on employers through wage mandates, leave mandates, health insurance coverage mandates or by other means, are contrary to the New York's goals of promoting new investment and new jobs."
Heather Briccetti, president and CEO of The Business Council of New York State, Inc.