Proposed bills could be costly for New Mexico restaurants

BOTH SIDES OF THE WAY. TWO NEW PROPOSALS TO INCREASE THE STATE MINIMUM WAGE ARE NOW UP FOR DISCUSSION JUST WEEKS AFTER THE MINIMUM WAGE JUMP. $7.50 TO $12 PER HOUR. OVER THREE YEARS, IT WAS SIGNED INTO LAW IN 2019 BY GOVERNOR MICHELLE LUJAN GRISHAM. UNDER AMENDED HOUSE BILL 28 PROPOSAL, INFLATION ADJUSTMENTS CAN JUMP MINIMUM WAGE TO $15.55 BY 2034, UNDER REVISED VERSION OF HOUSE BILL 25, MINIMUM WAGE MAY RISE FROM $13.50 BY 2024 TO $15.50 BY 2025. THE MINIMUM WAGE WAS NEVER INTENDED AS AN EXISTING WAGE. It should be an entry level. It should be something you started with while some argue it can be a drain on the New Mexico restaurant industry and we need to tip people more which would mean increasing the prices of your dishes AND YOUR BEER SO THAT PEOPLE TIP 15 20% OR THE SHOP HAS TO PAY EVERYTHING JUST ENSLAVE AND THEN IT’S EVEN WORSE. OTHERS SAY the more the merrier. I THINK IT’S PRETTY EXCITING AND I AM ALL FOR RAISE THE PRICE AND RISE OUR MINIMUM WAGE. I JUST WANT TO BE SURE IT WILL NOT WORK. THE PRICE OF LIFE JUST DON’T RISE TOO MUCH. RILEY WHITE, UNIVERSITY OF NEW MEXICO ECONOMIST, BELIEVES THAT PEOPLE SHOULD CONCERN LESS ABOUT INFLATION THAN A COMPLEX ISSUE FROM BOTH SIDES AND MORE CONCERNING SOME KIND OF GENERAL OTHER PICTURE. THE MIX OF THINGS THAT AFFECT PEOPLE’S WORK-LIFE BALANCE, THEIR ABILITY TO BRING A REASONAB

Proposed bills could be costly for New Mexico restaurants

“The minimum wage was never intended to be a living wage,” said Denise Baker, co-owner of Rio Bravo Brewery.

Two new proposals to raise the state minimum wage are now up for discussion. This comes weeks after the state minimum wage increased from $7.50 to $12 an hour over the course of three years. It was signed by Gov. Michelle Lujan Grisham in 2019. Inflation adjustments can raise the minimum wage to $15.55 by 2034, under an amended House Bill 28 proposal. According to a revised version of House Bill 25, the minimum wage could rise from $13.50 by 2024 to $15.50 by 2025. Some restaurant owners worry the wage increase could hurt the industry that they started,” Denise said Baker, co-owner of Rio Bravo Brewery “You learned a trade, or you start a business, you rise to another position, not something to live on and pay your rent and all your bills, especially smaller ones. I mean, you.” can only increase the price of groceries until no one comes to your restaurant,” she said. “We would have to have people tipping more, which would mean you would have to raise the price of your food and your beer so that people tip 15, 20% or the shop has to pay it. My biggest problem with that is, yes, everyone would make $12 to $15. But as you could see, when you easily bought a box of eggs or a packet of eggs, or paid a gas bill or electric bill, it’s just a ripple effect. “Others believe the increase in wages could be beneficial for low-income families and those who need financial assistance. “I find it quite exciting,” said Ellias Arbiso, a New Mexico resident. “I just want to make sure the cost of living doesn’t going up too much.” Reilly White, an economist at the University of New Mexico, believes this is a complex issue for both parties. “You have to look at the people who are currently earning minimum wage. Geez. Wouldn’t it be more advantageous if make a little more money at the end of the day? For example, if you look at the people earning the minimum wage, mostly, not always, often it’s younger workers with little experience. When the minimum wage goes up, employers often respond with one Change in the nature of their workforce and not only for the previously mentioned reasons of reducing working hours or changing the matrix often hire less youthful employees who have no experience hiring more experienced employees with more experience,” he said. “While there are actually relatively few workers, there are still thousands of workers in New Mexico who are employed at minimum wage, but relatively few overall who are employed exactly at minimum wage. Also, it changes the nature or composition of the workforce itself. It’s likely that people with years of experience will be more competitive for many of these minimum-wage jobs. That changes the way many of these discussions work. It’ll be at the end of the day, you know, we’re going to look at other economic methods. An economic question we are trying to solve is: How can we reduce child poverty in New Mexico? It actually makes more sense to give direct transfers to families than to look at the minimum wage, which is an inefficient way of doing these things. So there are a lot of other things that can be done to solve the problems at hand. These are often great talking points for lawmakers across the country on the issue. It will benefit workers earning minimum wage, but likely it will also result in those workers potentially having fewer hours and potentially more responsibilities as well. So that’s something to consider as well. “Decent standard of living for their children and their families,” he said. “There are some positive effects from raising the minimum wage, but also things like short-time work. It puts you in a position of greater responsibility.” have that’s expected of the worker So that combination of things is part of the consequences of everything It might be good, or it might not be good, depending on how it’s legislated $12 an hour.

Two new proposals to raise the state minimum wage are now up for discussion. This comes weeks after the state minimum wage increased from $7.50 to $12 an hour over the course of three years. It was signed by Gov. Michelle Lujan Grisham in 2019.

Inflation adjustments can raise the minimum wage to $15.55 by 2034, under an amended House Bill 28 proposal. According to a revised version of House Bill 25, the minimum wage could rise from $13.50 by 2024 to $15.50 by 2025.

Some restaurant owners fear the wage increase could hurt the industry.

“The minimum wage was never intended to be a living wage. It should be an entry level salary. It should be something to start with,” said Denise Baker, co-owner of Rio Bravo Brewery. “You’ve learned a trade or started a business, you’re moving up to another position, not something you can live on and pay your rent and all your bills.”

“Everything just blows up and then it’s even worse. This will hurt any restaurant, especially smaller ones. I mean, the only way you can increase food prices is until nobody comes to your restaurant,” she said. “We would have to have people tipping more, which would mean you would have to raise the price of your food and your beer so that people tip 15, 20% or the shop has to pay it. My biggest problem with that is, yes, everyone would make $12-15. But as you could see, when you’ve bought a box of eggs or a packet of eggs, or paid a gas bill or electric bill, it’s just a ripple effect.

Others believe the increase in wages could be beneficial for low-income families and those in need of financial assistance.

“I think it’s pretty exciting,” said New Mexico resident Ellias Arbiso. “I’m all for raising the price — raising the minimum wage. I just want to make sure the cost of living doesn’t go up too much.”

University of New Mexico economist Reilly White believes it’s a complex issue for both sides.

“You have to look at the people who are currently earning minimum wage. My goodness. Wouldn’t it be more beneficial to make a little more money at the end of the day? For example, if you look at people earning minimum wage, mostly, not always, often it’s younger workers with little experience. When the minimum wage is raised, employers often respond by changing the nature of their workforce, and not just for the aforementioned reasons of reducing hours or changing the matrix. They often hire less youthful employees who have no experience hiring more experienced employees with more experience,” he said. “While there are actually relatively few workers, there are still thousands of workers in New Mexico who are employed at minimum wage, but relatively few overall who are employed exactly at minimum wage. Also, it changes the nature or composition of the workforce itself. It’s likely that people with years of experience will be more competitive for many of these minimum-wage jobs. That changes the way many of these discussions work. It’ll be at the end of the day, you know, we’re going to look at other economic methods. An economic question we are trying to solve is: How can we reduce child poverty in New Mexico? It actually makes more sense to give direct transfers to families than to look at the minimum wage, which is an inefficient way of doing these things. So there are a lot of other things that can be done to solve the problems at hand. These are often great talking points for lawmakers across the country on the issue. It will benefit workers earning minimum wage, but likely it will also result in those workers potentially having fewer hours and potentially more responsibilities as well. So that’s also something to consider.”

“People should be less worried about inflation and more worried about the overall different picture, the mix of things affecting people’s work-life balance, their ability to provide their children and their families with a decent one To provide a standard of living,” he said. “There are some positive effects from raising the minimum wage, but also things like short-time work. It makes you have more responsibility that’s expected of the worker. So that combination of things is part of the consequences of all it could be good, or it could be not good, depending on how it is legislated.

Before the law was passed, New Mexico had one of the lowest minimum wages in the country. It is now one of 17 states that have a minimum wage of $12 an hour.

Source