Guest Author
The proposed ballot initiative to raise Florida’s minimum wage to $15 an hour has a lot of feel-good appeal, but behind all the warm and fuzzies lie a plethora of unintended consequences.
An increase like this would have disastrous impacts on businesses and individuals alike.
If passed, this amendment would result in a 77 percent increase in labor costs in six years. Additionally, the proposed ballot initiative does nothing to address Florida’s tip credit, which is frozen at $3.02.
So, if this proposed amendment makes it onto the ballot and is passed by voters, tipped employees will earn a cash wage of $11.98 an hour.
The simple truth is the majority of Florida’s businesses cannot afford that increase, and the hospitality industry is no different. Business owners will be forced to find solutions to control costs, and these solutions will have a direct impact on our state’s 1.4 million hospitality workers.
The most obvious solutions include reducing the number of employees, reducing the number of hours remaining employees work and seeking labor alternatives like automation.
When business owners are forced to make these tough choices to keep their doors open, everyone is hurt. Entry-level and opportunity jobs become more difficult to find, and the path to the middle-class narrows.
The men and women of the hospitality industry are literally the faces of Florida’s tourism industry, and they are the ones who create the memorable experiences that keep visitors coming back.
It is imperative that we preserve their jobs and protect the opportunities afforded to those who ensure our state is warm and welcoming for our guests.
We are already seeing a move to automation in states that have drastically increased their minimum wage, so it is more critical than ever that we band together to protect Florida’s hospitality jobs.
Now is the time to act.
Talk with your employees, your neighbors and your elected officials to educate them about how a 77 percent increase will impact us all. While a $15 an hour minimum wage may sound appealing, it is certainly not good for the people.
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Carol Dover is president and CEO of the Florida Restaurant and Lodging Association.
7 comments
Frank Mirabella
June 20, 2019 at 2:32 pm
The labor market is extremely tight, the economy is expanding and their is little inflation. It seems to me,that this is the perfect time to raise the minimum wage. There just may never be a better time. I think that the people of Florida will figure this out…
Fed Up
June 20, 2019 at 2:36 pm
How much do you earn Carol? Perhaps you’d be willing to give every penny you make above the current minimum wage into a pool to pay those that don’t even earn that. Let’s see how long it is before you guest write a piece screaming about your own poverty.
RVR
June 20, 2019 at 2:44 pm
If you can’t pay a living wage to your employees then your business model is deficient.
Wondering if all these hotels and restaurants stopped paying huge lobbying bribes and dues to Carol’s organization how much more they could pay their employees.
gary
June 20, 2019 at 5:43 pm
@RVR
You do realize that a living wage is subjective? I might say I need $25.00 to meet my living wage.
I hope you understand that if it does go to 15.00 per hour a lot of people will become unemployed and a lot of services will no longer be available.
Cogent Observer
June 20, 2019 at 4:08 pm
Yes, Ms. Dover–you’re correct. The simple fact is that not all people have skills that warrant $15/hour.
It is not an issue of the employer’s “business model”, RVR, it is a question of the employee’s skill-set. If he/she thinks he/she is worth more money than is being offered, don’t accept the job offer, improve your skills, or take the risk of starting your own business (like the prospective employer did). Stop whining about a “living wage”. One’s earnings are commensurate with skills or the ability to serve the needs or desires of others.
gary
June 20, 2019 at 5:47 pm
This is simply unviable.
It has been tried, it failed!
https://www.washingtonpost.com/news/wonk/wp/2017/06/26/new-study-casts-doubt-on-whether-a-15-minimum-wage-really-helps-workers/?noredirect=on&utm_term=.53196ef39758
Cynthia Watts
June 20, 2019 at 7:57 pm
And how do you propose that people live Carol. Poor business people. At least they make a profit. Employees can’t afford their rent or food or health care on what wages are today. Why don’t you take a 40 hour job at McDonalds and see how well you can live on the weekly pay. What century do you live in.
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