Retailers Oppose Minimum Wage Hike

“Raising the standard of living for low-skill, low-wage workers is a valid goal. But there is clear evidence that mandated wage hikes undermine the job prospects for less skilled and part-time workers,” so said NRF Senior VP David French, in a letter to the Senate in response to proposed legislation aiming to increase the federal minimum wage by 40 percent.

NRF labeled such legislation an “anti-job tax,” which would lead to higher labor costs for employers and fewer opportunities for young and entry-level workers. NRF further noted that this is the “least opportune moment” to mandate a federal wage increase on employers with small and large businesses alike already confronting workforce challenges associated with the implementation of the Affordable Care Act.

Instead of focusing on “sound-bite politics,” the organization said, NRF urged Congress to focus on advancing long-term economic policies that would provide employers with the certainty they need to make strategic investment decisions and improve hiring opportunities for all workers.

“Policymakers have other tools, such as increasing the earned income tax credit, fixing the tax code, education improvements, immigration reform, transportation funding, and strong trade alliances that will aid in achieving that goal without creating more unemployment,” French wrote. “Finding more opportunities for those trying to start out is a better economic approach than restricting the amount of jobs for those seeking employment.”

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