HB1752 would amend the Arkansas minimum wage law by exempting employers with less than twenty-five employees, a private nonprofit developmental service provider, and private nonprofit organizations with an annual budget less than $1 million. HB1753 would exempt people under 21 and college students from the minimum wage law.
In the 2018 General Election voters approved an increase to the minimum wage that rises to $11 per hour by 2021. For large companies, the costs are passed on to consumers through higher prices or inferior products/services.
This directly increases costs to small businesses and for many, the drastic rise may cause them to close their businesses entirely. Workers making minimum wage are hit hardest as companies look to cut hours or terminate employees to adjust for the increases.
Arkansas has the highest minimum wage in the area. When adjusting for percentage of median wage, Arkansas would have the HIGHEST minimum wage in the entire country.
CFA does not support a minimum wage law. The free market and free people should be allowed to freely contract for providing goods and services.
Exempting the groups in the proposed legislation would provide lower labor costs for small businesses in Arkansas and improve economic freedom.