How does raising the federal minimum wage affect small businesses?

Gradually increasing the federal minimum wage to $15 by 2025 will mean more customers for small businesses across the country. The historically low federal minimum wage hurts workers and their families, who are struggling to make ends meet, and threatens small businesses, which need customers to survive.

Does Congress have the power to set a minimum wage?

Overview. The national minimum wage was created by Congress under the Fair Labor Standards Act (FLSA) in 1938. Congress enacted this legislation under its authority in Article I, Section 8 of the U.S. Constitution: “The Congress shall have power to . . . regulate commerce . . .

Does federal minimum wage affect all businesses?

The main federal law that sets the minimum wage is the Fair Labor Standards Act (FLSA). In today’s world, this means that nearly all employers are covered by the FLSA.

Why is minimum wage different in each state?

A state doesn’t have to have a minimum wage law, but as of 2021, 29 states and Washington, D.C., did. A state with its own law can make the wage lower, equal to or higher than the federal minimum wage. Federal minimum wage overrides state if the state wage is lower. In those cases, too, the higher wage prevails.

Why is minimum wage an implied power?

More Examples of Implied Power The minimum wage was established using the power to regulate commerce. The Air Force was created using their power to raise armies. The government can punish tax evaders using the power to collect taxes clause.

Will small businesses lay off workers if Congress raises minimum wage?

Sen. Bernie Sanders, I-Vt., speaks during an event to introduce the Raise The Wage Act at the U.S. Capitol on Jan. 16, 2019. One third of small business owners say they’ll likely lay off workers if Congress raises the federal minimum wage to $15 an hour, according to the latest quarterly CNBC|SurveyMonkey Small Business Survey.

Should the federal minimum wage be raised?

The higher federal minimum wage has widespread support among the general public, according to the survey’s non-small business owner response group (65\% support, while 33\% oppose).

Which states have the most support for a $15 minimum wage?

Small business owners in the Pacific region (Alaska, California, Hawaii, Oregon, Washington) and the mid Atlantic (New Jersey, New York, Pennsylvania) are some of the most supportive of a $15 federal minimum wage, and also some of the most likely to say they won’t have to raise wages or lay off workers in order to comply with the proposed change.