The National Federation of Independent Business (NFIB) in Virginia, has expressed deep disappointment with the latest mandate from the Virginia legislature that gradually increases the minimum wage in Virginia from $9.50 on May 1st to $15 an hour by 2026 starting on Saturday.
“This is not the time to burden small business owners with more government mandates,” said Nicole Riley, NFIB State Director in Virginia. “A $15 minimum wage would hurt Virginia small business owners most impacted by COVID-19 restrictions. Not to mention that rural Virginia small businesses would be burdened with higher wages that don’t match the cost of living. You can’t compare big business to small business. Big business has the profits and revenues to cushion the blow. Meanwhile, small business owners are simply trying to survive and can’t afford additional costs.”
Those cost increases would force small businesses owners to cut back on expenses such as less hours for workers – or even close their doors.
Nationally, NFIB research shows the extraordinary damage a $15 per hour federal minimum wage would do:
1.6 million jobs lost – 57% at small businesses
700,000 jobs lost at the smallest firms
165,000 jobs lost in the restaurant industry
162,000 jobs lost in the retail trade industry
85,000 jobs lost in the administrative and support services industries
$2 trillion reduction in real economic output
Nearly $1 trillion reduction in real GDP
$103 billion reduction in personal disposable income