THE PODIUM | Patchwork of minimum-wage laws would undermine small business

Currently, Colorado’s minimum wage is contained in the Constitution. The requirements for raising the minimum wage, and when to do it, is clearly laid out in the constitutional amendment passed by the voters.
House Bill 1210 attempts to undo the prohibition against local governments setting their own minimum wage rates. This argument against the bill has nothing to do with the minimum wage itself; that is an argument for another time. At issue now are the unintended consequences which would come with local governments attempting to gain a competitive advantage with a neighboring city or county by tinkering with the minimum wage.
Let’s use for example a small mom-and-pop restaurant that happens to have three locations in three different cities and is considering a fourth location. Think of the myriad of bookkeeping headaches as they attempt to keep track of more than one minimum wage rate. Another consideration is if the bookkeeper should make an error, the business is now subject to civil penalties and court action by the local government and the employee.
If HB 1210 were passed by the Colorado legislature, cities and counties could very well kill the goose that laid the golden egg – small business. That segment of the economy is responsible for the creation of over two-thirds of net new jobs and is employing three-quarters of the workforce.
That National Federation of Independent Business’ opposition is based upon the administrative burden of having a patchwork of different minimum-wage laws and enforcement mechanisms small and independent business owners may be forced to navigate should 1210 pass.
HB 1210 could very well take away the desire of business owners to expand their businesses to multiple sites, eliminating the creation of new entry-level jobs.
Thirty-five states view the minimum wage a matter of statewide concern. This issue is not a partisan issue. Should Colorado elect to join the 15 states that allow local governments to set their own minimum wage, it will make Colorado less attractive to new businesses.
Unfortunately, House bill 1210 is absent of any benefit to Colorado employees or employers.
Tony Gagliardi is Colorado state director for the National Federation of Independent Business.

