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Small businesses push back against proposed minimum wage increase

There are more than a dozen labor and employment bills filed in preparation for the first day of the General Assembly session. More than half address minimum wage.

NORFOLK, Va. — The Virginia General Assembly session is coming fast, convening in less than two weeks on Jan. 8. With Democrats now in control, many lawmakers say raising the minimum wage is a top priority.

There are more than a dozen labor and employment bills filed in preparation for the first day of session, more than half addressing minimum wage.

Hampton Senator Mamie Locke wants to increase the minimum wage to $15 dollars by 2022. Senate Incoming Majority Leader Dick Saslaw wants to raise it at a slower pace, reaching $15 dollars an hour by 2025.

Ray Mattes, President and CEO of the Retail Alliance, an association that represents local Hampton Roads retailers, said many small businesses already offer benefits like 401k, paid time off and health insurance. Mattes argued the wage hike will take away from that.

“You’re going to see a lot of these small businesses, [so] that they want to stay competitive, they’ll just cut hours," said Mattes. “They’ll cut staff and many of these small business owners will absorb those hours and that could ultimately you know, drive them out of business.”

But proponents of the wage hike say it will help employees and their families. Last week Colonial Downs Group announced it would increase their minimum wage at all Rosie’s facilities to $15 an hour.

“A living wage creates a pathway out of poverty and toward family stability and security," said Richmond Mayor Levar Stoney.

If Virginia passes a law increasing the minimum wage to $15 an hour, it will join seven other states and Washington D.C.

“They’re going to have two options at the end of the day,” said Mattes. “Either they’re going to raise the minimum wage and pass on that increase to their consumer goods or they’re going to have to cut back on hiring and lay people off.”

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