DELAWARE- Delaware is raising the minimum wage to $15/hour by 2025.
A step one Senator says will lift families out of poverty, with other supporters saying the increased wage will help more than just families but businesses as well, but leaders on the other side of this change say it will have trickling effects.
Minimum wage is going to go to $10.50/hour starting next year and there's going to be an increase each year until 2025 when minimum wage will each $15/hour, and there are a lot of people who think this is a good idea but there's also those who think it's not such a great idea.
This comes as hiring signs still are front and center at businesses all over the coast, and one business owner downtown in Rehoboth Beach says the increase in minimum wage further complicates existing problems.
Chad Miller, the Owner of Pet Wants said, "We're offering right now $13 an hour we're considering sign on bonuses and I have not had anyone apply. I know a lot of my friends that are owners are even increasing more they're offering $15 an hour with a $500 bonus sign on for the beginning of the summer a $1000 at the end of the summer and we just can't compete with that."
Some elected officials in support of Senate Bill 15 say the pros outweigh the cons.
Sen. Jack Walsh a sponsor for Senate Bill 15 says, "This legislation will help lift families out of poverty and inject money back into our small businesses at the exact moment they need it the most, creating a virtuous cycle that will help power our economy for years to come."
But the other side of the aisle says increasing pay actually decreases demand.
Rep. Ruth Briggs King, (R) District 37 said, "Increase in minimum wage usually results in less jobs being created especially for those who need that opportunity for a job, most hard hit 16-19 year old's."
The Rehoboth-Dewey Beach Chamber of Commerce surveyed its members at the end of 2020 asking what effects the increase could have on business.
From the responses, 14 percent say it could cause them to lay off employees, 32 percent say it could cause them to reduce employee hours, 12 percent say it could force a hiring freeze, but 39 percent say it would have no change or impact. All that's left now is for Governor John Carney to sign the bill into law.
Gov. John Carney, (D) - Delaware, said, "And we've got to get our economy moving again and we're on the verge of doing that, it's really exciting as we accelerate out of this very difficult last year."
The Governor came to Funland today on the Rehoboth Beach boardwalk to show his excitement over a bigger goal, lifting the COVID State of Emergency on July 13th.