Olson Pushes for Delay on Mandatory Minimum Wage Increase

Rep. Pete Olson today announced that he has introduced H.R. 3309, the Small Business Job Security Act, legislation that would delay for one year stage three of the minimum wage increase set for July 24, 2009.  The last thing our small businesses need in this down economy is another government mandate that will raise costs and kill jobs.  At that point, Congress should reassess the economic climate, taking into account the unemployment rate.

“Our small businesses are increasingly under assault by this Congress during a difficult economy and exploding federal regulation and taxation,” Rep. Olson said.  “The proposed health care reform legislation contains costly tax increases that will hurt many small businesses, and the cap-and-trade bill that passed the House will increase their energy costs.   On top of all this, a costly, federally mandated minimum wage increase is about to rub salt in the wounds of the largest employer in America -- small businesses. 

“Small businesses are being choked by burdensome regulations and higher business costs as they struggle to stay open and operating.  The better the performance of small businesses, the better job opportunities and higher salaries that become available for out of work Americans.  This legislation is not aimed at punishing the millions of Americans employed at the minimum wage level, rather an attempt to provide long term job security.  The increase would still go into effect in one year after the economy has hopefully stabilized,” Olson concluded.

President Obama and the Democrat leadership promised that the American Recovery and Reinvestment Act would keep the unemployment rate below 8%.  With unemployment topping 9.5 % a delay would benefit those who pay minimum wage salaries.
 
When the three phase minimum wage increase was initially signed into law in May 2007, the unemployment rate was 4.5% and when the first phase went into place the unemployment rate was 4.6%.  At a time of record deficits, uncertainty of increased taxes and looming prospect of government takeover of the healthcare system small businesses simply cannot afford this final wage increase.
 
This modest delay in increasing the federal minimum wage will provide a lifeline to those small businesses struggling to stay open and keep Americans employed. If the bill is passed after the July 24 deadline, the minimum wage would simply revert back to the previous rate of $6.55 until the following year.