SNN News

Suncoast businesses could face financial hardship under proposed Ballot Amendment 2

WEB PIC.jpg

SARASOTA – Raising the minimum wage in the U.S. is a hot topic, perhaps even more so as we live with the pandemic.  Come November, Florida voters will decide if an amendment to significantly raise the Sunshine State minimum wage becomes a reality. 

If you watch TV, you’d think the only thing on the November ballot is the presidential race.  But, there’s a ballot initiative that may impact hundreds of thousands. We are talking about Amendment 2.

Ballot Amendment 2 is a proposed amendment to the Florida constitution that would mandate Florida businesses pay a minimum wage of $15 an hour by 2026.

But Florida District 73 State Representative Tommy Gregory says the ballot initiative could force many small businesses across Florida to cut workers hours, lay off employees or close completely.

“The proponents of it claim that this is going to help those workers that are just being paid minimum wage,” said Rep. Gregory. “You may be the very worker that may need that money the most. Just trying to get yourself established just trying to make ends meet. And you’re going to be the exact worker that’s hurt the most.

According to an economic impact study – Florida has already lost 336,000 jobs due to COVID-19, and Ballot Amendment 2 could possibly kill another 158,000 jobs.

And a Florida TaxWatch economic impact report says that businesses will pay an additional $7.3 billion a year to employ the same number of workers today at a $15 minimum wage.

“Small businesses like hours are able to create jobs because of the long hospitality model of tipped wage,” said Anne Rollings.

Rollings manages the corporate office for the Gecko’s hospitality group family of restaurants. She says the proposed amendment would end the hospitality model and will cause prices to rise sharply.

“Workers know that they have an incentive to make a good living wage and that is through the hospitality tip model,” Rollings said.

Economists William Even and David Macpherson reveal Florida’s unemployment rate stands at 11.3% due to the economic impacts of COVID-19. Before COVID-19, Florida’s restaurant, lodging and tourism industry generated more than $112 billion in annual economic impact and provided jobs for more than 1.5 million Florida families.

But Filmmaker Abby Ginzberg explains through her documentary film Waging Change that the country needs to reevaluate how they pay the everyday working class American in these industries.

“People should be really clear that when there is an effort to raise the minimum wage nobody involved in the fight for one fair wage within the restaurant industry is talking about getting rid of tips,” said Ginzberg.

The trailer to Ginzberg film is available online and the film is currently being screened in theaters and virtually across several film festivals across the country.

Look for Alejandro’s report on Monday on the other side of the coin on the $15 minimum wage.