Don’t-Hire-Hawaii Bill Up For Vote, Wednesday

News Release from NFIB Hawaii March 26, 2013

Senate Bill 331 boosting the state’s minimum-wage rate by almost 33 percent gets its first House hearing Weds March 27 in the Finance Committee at the same time a representative group of Hawaii small-business owners gather for their annual day at the capitol.

“Media wishing to know what severe consequences SB 331 will have on the state’s economy can find out directly from the people who have historically created two-thirds of net new private jobs in the U.S.,” said Melissa Pavlicek, Hawaii state director for the National Federation of Independent Business, America’s voice of small business. “Big corporations are starting to climb out of the recession, but small business has failed to recover because of a series of federal and state policies and proposals like SB 331. It should be called the Don’t-Hire-In-Hawaii bill, if accuracy means anything to the Legislature.”

Increasing the state’s minimum wage rate by almost $2 an hour doesn’t sound like all that much to some people, but to those who hire it can be a solvency threatening spike. “Big corporations do not have to absorb the cost of minimum wage increases because most minimum-wage jobs are offered by small businesses,” noted Pavlicek. “The minimum wage directly affects small businesses because a large amount of their earnings go directly to pay for operating expenses, such as equipment, supplies, lease or mortgage, credit lines, inventory and employee wages and benefits. And, it’s vital to underscore that the vast majority of minimum-wage earners are young adults beginning their first jobs, those working a second job to make a little extra income, and some seniors looking for part-time work to augment their Social Security. They are the ones hurt most by minimum-wage increases, because employers must start with cutbacks of them.”

In a February 15 Wall Street Journal editorial taking issue with President Obama’s call to raise the federal minimum wage to $9 an hour, it noted that “University of California at Irvine economist David Neumark has looked at more than 100 major academic studies on the minimum wage, and he says the White House claim of de minimis [minimal] job losses ‘grossly misstates the weight of the evidence.’ About 85% of the studies ‘find a negative employment effect on low-skilled workers.’ "

Also noted in the editorial, “William Dunkelberg, chief economist for the National Federation of Independent Business, says that after the July 2009 increase 600,000 teen jobs disappeared in the next six months even as GDP expanded. In the previous six months, when the economy was still shrinking, half as many teen jobs were lost. The overall teen jobless rate was still 23.4% last month, which means demand for unskilled workers is low even at $7.25 an hour. Demand will be lower at $9.”

Hawaii small-business owners will gather in Room 329 in the State Capitol, tomorrow, March 27, at 4 p.m. at about the same time the House Finance Committee takes up HB 331.

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Your Day at the State Capitol is March 27

NFIB/Hawaii urges its members to make every effort to attend the annual Small Business Day at the Capitol on Wednesday, March 27.

Every major poll shows small-business owners the most highly regarded group in America, and every elected official claims to be your friend. So how come this doesn’t translate into better legislation and laws for Main Street enterprises? Because out of sight is out of mind.

During the cut and thrust of legislative activity, even lawmakers who should know better can fall victim to the persuasion of the supremely well-funded lobbying machines of trial lawyers, big labor, and advocates for bigger and bigger government—while small-business owners must attend fulltime to the running of their enterprises.

To help blunt the force of big money, NFIB hosts annual Small Business Day events at the Capitol, and the more members who attend, the louder we speak, and the less we are forgotten. Tentatively scheduled for the day’s events are:

• Welcome/Overview of NFIB legislative priorities from NFIB/Hawaii Leadership Council Chairman Ron Heller
• Mahalo to cooperating organizations: Business Alliance, Chamber of Commerce, Building Industry Association
• Meet the Legislators reception from 4 p.m. to 5:30 p.m.

Further speakers will be forthcoming. There’s no cost to attend, but reservations are required. Bring along a fellow small-business owner, even if he or she is not an NFIB member. You can make your reservation by email with NFIB Member Support Manager Stacy Jenkins, or by phoning her at 866-307-2846.

NFIB/Hawaii Small Business Day at the Capitol