Unemployment: The ultimate sick policy
ST. JOSEPH, Mo. (News-Press NOW) -- The loss of one small business may go unnoticed amid the vast sea of commerce. But if too many of them struggle all at once, then the economy is in grave danger.
Whether you’re talking about a restaurant or a machine shop, these businesses drive job growth in communities like St. Joseph. Many are increasingly concerned about the impact of Proposition A, a voter-approved measure that raises Missouri’s minimum wage to $15 an hour, more than double the current federal rate of $7.25.
Advocates for small businesses, including the Missouri Chamber of Commerce and Industry, the Missouri Restaurant Association and the Missouri Grocers Association, have raised alarms about other aspects of Prop A. In particular, a requirement to offer paid sick leave could bring unintended consequences – not just for businesses but for the workers this measure is supposed to help.
A survey finds that 37% of business leaders say Prop A will discourage them from hiring new employees. That means fewer jobs across Missouri. Here is where Prop A, in a twisted sort of way, succeeds in offering sick leave for all. Unemployment is the ultimate sick policy.
To be clear, small businesses should try to offer a sick leave policy that’s fair to employees and makes the employer competitive in the marketplace for labor. But that decision should be based on the unique circumstances of each business, not on a one-size-fits-all diktat.
The bigger problem with Prop A comes with linking future minimum wage increases to the consumer price index. In today’s high-inflation economy, Prop A will put future minimum wage increases on autopilot. The results will fuel more inflation and degrade the earning power of the low-wage workers and families that Prop A intends to benefit.
In Jefferson City, lawmakers are considering a bill to roll back the more onerous requirements in Prop A. If passed, this bill would eliminate both the automatic minimum wage increases and the requirement to offer up to 56 hours of paid sick leave a year.
The House and Senate bills retain the one-time increase in the minimum wage to $15 an hour.
This legislation will produce a chorus of howls about squelching the will of the people. But the special interests that pushed for Prop A chose a change in statute – not a constitutional amendment – knowing it could be altered. It should be seen as the start of negotiations, not the end.
Missouri lawmakers should approve the revisions to Prop A, but not because the changes are good for businesses. These changes are good for all Missourians.
