Increase in Minimum Wage May Cause Employers to Scale Back
By: Bill Palmer
Updated: February 13, 2013
The State of the Union address from President Obama hit hot topic issues among many Americans.
A lot of the talk today was about the proposal to raise the minimum wage.
President Obama talked about spending cuts, jobs, the economy, immigration as well as increasing minimum wage.
Obama says the increase would top off minimum wage at 9 dollars an hour.
About 15 million workers would get that raise.
Jake Rouch from the Erie Regional Chamber and Growth Partnership says that could hurt local businesses.
If the minimum wage is increased, Rouch says it could cause employers to scale back employment or put off hiring.
Officials from one of the area's largest employers, Scott Enterprises, say it would impact them as they employ 2,500 employees, about 50 percent of those are hourly.
President of Scott Enterprises, Nick Scott Senior is in favor of the increase, but says during a tough economic time it can be a challenge.
At 40 hours per week, 52 weeks a year, employees make about 15 thousand dollars under the current minimum wage.


