7. Small Businesses Would Fail
Most small businesses struggle to make a profit. It’s hard to run a company, pay employees, and deal with regulations like insurance and taxes. But adding a $15 an hour minimum wage into the mix is sure to be a death blow.
Over one third of minimum wage employees currently work for companies that employ less than 50 people. These businesses pay so low because that’s all they can afford.
By raising the minimum wage, it becomes near impossible for most small business owners to make payroll. And they are forced to go close their company down instead. This would further damage the economy and prevent many innovative companies from being launched.
8. Freelance Businesses Would Skyrocket
Since companies wouldn’t want to pay $15 an hour, minimum, to their employees, they’d find clever ways to get around this law.
One system they might use involves hiring freelance contractors to do their work.
Instead of paying by the hour, companies can pay contractors one fixed fee for completing an entire task. It saves them money in the long run, and allows them to avoid any minimum wage laws.