President Obama announced earlier this month that he is aiming to increase the national minimum wage for federal workers from $7.25 to $10.10 by 2016, and small businesses are largely divided on the issue.
Many small businesses employing doctors, electricians, plumbers and other high skilled workers are already paying above the minimum wage. However, businesses that rely on minimum wage, such as quick-service restaurants and trucking, may have some tough choices ahead. Some small businesses indicate that they would have to cut back hours, shift to contract work in order to accommodate the hike, or eliminate hiring at the lower end of the wage scale.
OnDeck customer and small business owner Kristopher Jackson of Prompt Internet Solution noted:
My issues aren’t with minimum wage, but rather the extra burden of taxes, costs, and bureaucracy that makes it seem like the government tries everything to discourage someone from hiring rather than motivating them to do the opposite.
Although the bill has yet to be passed and is only directed at federal workers, small businesses are certainly engaged in the issue. Watch OnDeck’s CEO Noah Breslow weigh in further on Fox Business Money with Melissa Francis.
To find out the minimum wage in your state, click here.
OnDeck is a Google Ventures-backed company with an A+ Rating with the Better Business Bureau. The company offers small business loans nationwide to over 725 different industries.
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