Just hours before Governor Josh Shapiro delivered his 2026-27 budget address at 11:30 AM, the House Labor & Industry Committee rushed through and passed yet another minimum wage increase bill at 9:20 AM. Coincidence? Hardly.
Two Democratic Representatives scolded Republicans with the same old script we’ve seen for years. Amendments from the GOP side? Shot down again by the Democrat majority on the committee. No real debate, no compromise, just steamroll.
The Bill: HB2189 Representative Jason Dawkins(D)
Title: Increasing Minimum Wage
Vote: 14-12
What Does it Mean: $11 an hour beginning January 1, 2027. $13 an hour beginning January 1, 2028. $15 an hour beginning January 1, 2029. After 2030, the wage increases by cost of living adjustment.
The GoBigSmallBizNetwork’s Position: OPPOSE, Why?
- Higher Labor Costs Strain Tight Budgets: Small businesses often operate on thin margins compared to large corporations. A mandated wage hike forces owners to pay more for entry-level or low-skilled roles without a corresponding increase in revenue or productivity.
- Potential for Job Cuts or Reduced Hiring: To offset higher wages, businesses might automate roles, cut hours, lay off workers, or avoid hiring new ones (especially teens or part-timers).
- Inflationary Pressure and Customer Impact: Wage increases often get passed on via higher prices for goods/services, which can reduce customer demand—especially in local markets where shoppers are price-sensitive.
- Uneven Impact Across Regions and Industries: A one-size-fits-all federal or state increase ignores local economic differences. It could exacerbate challenges without boosting overall economic health.
Hearing: Watch
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Any Questions? Email me, tracey@gobigsmallbiz.com
Thanks,
Tracey and Jeff Wakeen
