How raising the federal minimum wage to $15-per-hour will impact North Dakota small businesses


President-elect Joe Biden proposed a $1.9 trillion rescue plan for his first hundred days in office.
Included in that plan, is raising minimum wage to $15 an hour, nationwide.

Talks of whether or not workers make livable wages, have grown over the years.
Some think businesses should adjust with the changing times, while others don’t feel $15 an hour is the right move.

“I don’t think we are ready for the raise of 15 dollars at this moment.
Especially with this COVID and all this situation where we had to close the business for so long.
Especially that don’t have the same kind of income we had in the past.
I don’t feel that we are ready for something like this,” said Jumped Up Fun Park owner, Roberto Heredia.

After suffering losses from the COVID-19 pandemic, Heredia says they will have to come up with a new business strategy if the minimum wage is raised.

“Definitely increase our sales to make sure we can pay for all of the employees. Because, if we don’t make any business, we’re not going to put any employees in a high salary. Especially for 15-dollars an hour,” said Heredia.

According to the Congressional Budget Office, a minimum wage increase could lead to almost 4-million layoffs.
Local restaurant owners say they aren’t too concerned, but are waiting to see how the increase would effect them.

“Most of our staff is making over and above that 15-dollars an hour. But it would depend on what kind of credits we would receive as far as for tipping. If we could account some of their wages for tips,” said Kenny Howard, owner of FireFlour restaurant.

Howard says with a wage increase, often comes difficult business decisions.
“You might see a little bit of an increase in actual costs of products for the consumers. There might be some prices increases to offset that, and obviously, we don’t want to do that,” said Howard.

Biden also proposed $15 billion to aid small businesses.

The federal minimum wage $7.25, and hasn’t been increased since 2009.

Copyright 2021 Nexstar Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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