By Tim Wulf

There was a time when Nevada Democrats were pro-business.  They understood that free markets and a healthy business environment fueled Nevada’s economy.  Now Nevada’s Democrats in Carson City simply follow a national narrative that portrays business as the enemy and employees as victims.

I was dismayed to read that Republican Gov. Brian Sandoval is considering signing a bill that would increase minimum wage for all Nevada businesses, joining Democrats in attacking business.  I wrote an editorial in February on how economically unwise such a move is, and I’m even more concerned now as we are looking at all the bills the legislature will likely pass that will impact businesses in this state.

Here’s a list of bills that will probably find their way to Gov.Sandoval’s desk.  These bills will place mandates on Nevada businesses, increasing the cost of doing business in the state, and requiring the following:   

Provide a private, clean room for a nursing mother to expel breast milk. (AB113)

Allow any employee who’s a victim of domestic violence, or has a direct family member who was subject to domestic violence, up to 30 days of leave in a 2-year period.  (SB361)

Make accommodations for pregnant women. (SB253)

Install baby changing stations in public bathrooms. (AB241)

Endure new penalties for "equal pay" complaints and be subject to more lawsuits related to equal pay.   (SB397)

Provide to the state, if a business is a vendor to the state, certification that the business provides “equal pay for equal work without regard to gender.” (AB106)

Provide data to the state about “gender pay equity " and have this information placed on the internet, which could allow for public shaming of companies and even boycotts of businesses. (AB243 & SB343)

Calculate the value of every meal provided to a domestic worker and monetize the value of their lodging. (SB232)

Provide a bronze-level or higher insurance plan in order to be exempt from the requirement of paying $1 over minimum wage. (AB175)

Increase minimum wage by 75 cents a year until it gets to $12. (SB106 & SJR6)

Pay an employee triple damages if an employer violates any wage laws. (SJR6)

Provide 3 days of paid leave a year. (SB196)

All of these bills, when added together, impose excessive burdens to Nevada’s employers in an already burdensome regulatory environment.  Currently a restaurant located in Reno, Nevada is subject to 28 tax and regulatory agencies.  The cost of maintaining compliance is already too high.  The governor and the Legislature must look at the total impact of regulations, fees, fines, taxes, and penalties they will be putting on Nevada businesses.

While the intent of raising minimum wage and adding new regulations is to help those at the bottom of the pay scale, raising minimum wage pushes up all wages and costs.  Yet there is no corollary increase in profits to support these increases.  Locally owned, small businesses will be the most hurt by an increase to minimum wage, as they are least able to absorb these additional costs.   

Increasing the minimum wage incentivizes businesses to find alternatives to employees.   With advances in robotics, technology, and the ability to outsource, it becomes easier for employers to automate and eliminate.  For those who can’t find alternatives, they may choose to close, such as the 62 restaurants that closed last month in San Francisco.  Kiosks are already replacing cashiers, baristas, and cooks.   Additionally, kiosks don’t need health insurance, workers comp, or paid days off.  They don’t file harassment suits or sue over pay equity.

Society needs businesses to train our workforce.  Raising the minimum wage will deny many the opportunity to “learn while they earn.”  Raising minimum wage may be politically popular when running for office, but it makes no economic sense.

 

Tim Wulf, a small business owner in Reno, is a retired college economics professor, and chair of the Nevada - National Federation of Independent Business Leadership Council.