Rep. Fishbein Fights for CT Businesses

Opposes Rapid Increase in State Minimum Wage

After 14 hours of debate in the House that began at 10:00 p.m. Wednesday night, and ended Thursday afternoon at 12:05 p.m., after also voting on various proposed amendments to the same, State Representative State Representative Craig Fishbein (R-90) voted against an anti-business proposal to raise the state minimum wage to $15 within four years.

“The business community has spoken out forcefully against this increase, because they know it will cost more than it will return to the people it’s designed to help,” Rep. Fishbein said. “Small business owners and industry groups have repeatedly said that if this measure passes, it will mean fewer jobs for younger, entry-level workers as well as those with developmental disabilities, fewer work hours for those currently employed workers who make minimum wage, price increases and even job losses, as they struggle to contend with such a steep incline in expense over such a short period of time.”

HB 5004 – An Act Increasing the Minimum Fair Wage – raises the state’s minimum hourly wage from its current $10.10 to $11.00 on October 1 of this year, $12.00 on September 1, 2020; $13.00 on August 1, 2021; $14.00 on July 1, 2022 and $15.00 on October 15, 2023. The bill also ties future minimum wage increases to the Employment Cost Index, and requires the labor commissioner to make adjustments to the wage without further legislative approval.

“As somebody involved, quite intimately, with a small business, I understand the costs associated with meeting payroll, and the minimum wage itself is only one small piece of the expense businesses must carry to keep their doors open and people working,” Rep. Fishbein said. “In addition to paying the wage, employers must also pay taxes and unemployment insurance that are based on how much their staff receives.  Dollars spent up front mean several more must be spent in the back. Either prices will rise, employee hours will be reduced or, in some cases, eliminated in their entirety.”

Rep. Fishbein also said he is concerned that this bill ties future minimum wage increases to the Employment Cost Index. Without legislative oversight or approval, the wage would automatically increase if the index rises.  The wage will not decrease if the index falls.

“This literally removes a layer of oversight and eliminates the role of the elected legislature in determining the best needs of the state,” Rep. Fishbein said.  “When the next recession hits and businesses statewide are struggling they’ll still need to pay a potentially inflated wage, as determined by the Index. That leaves an employer the difficult choice of reducing worker hours or eliminating a position. Neither of those things is a benefit to the employee.”