U.S. Chamber Disappointed With Senate Passage Of Minimum Wage Increase

Calls it a Blow to America's Small Businesses

WASHINGTON, D.C.-The United States Chamber of Commerce today expressed its disappointment with the Senate's passage of a minimum wage bill that will adversely impact America's small businesses.

"Any minimum wage increase will significantly affect the bottom line of the nation's small business owners," said Bruce Josten, Chamber executive vice president for government affairs. "The increase will not help those it is purported to help and will force many small businesses to reduce employee hours, benefits, and new hires, and may even lead to layoffs."

Josten said the tax package designed to offset the cost of the minimum wage increase accompanying the legislation is a "bad deal" for small businesses because the tax relief is temporary while the tax increases are permanent.

The Chamber also expressed deep concern with the passage of an amendment that could prohibit businesses, non-profit organizations and others from obtaining federal grants and contracts for even minor paperwork violations associated with employment verification of both US citizens and foreigners. The provision not only calls for a seven to ten year debarment for even a first time good faith paperwork violation, but it also short-circuits due process by prohibiting judicial review. Blacklisting was determined to be bad policy years ago and this amendment sets a dangerous precedent by mandating punitive measures using the federal procurement system as the enforcement mechanism. There are already ample protections in the procurement regulations to ensure grants and contracts to the federal government are performed by the most qualified and responsible bidders.

The U.S. Chamber is the world's largest business federation, representing more than 3 million businesses and organizations of every size, sector and region.

www.uschamber.com

# # #

07-24