NASHVILLE, Tenn. – A new bill suggests raising Tennessee’s minimum wage from $7.25 to $20 per hour, making it the highest in the country. It’s the same bill that didn’t pass last year, but this year the author claims to have more support.
A year ago, we spoke with the owner of Dalts American Grill about how the $20 minimum wage would impact their business. When we learned that a new bill was being introduced to address the same issue, we went back to get updates.
Last year, Shannon Powell said that a $20 minimum wage would negatively impact his diner and lead him to raise his menu prices.
He feels the same this year. Powell thinks Tennessee should raise the minimum wage, but a wage that is too high could make some small businesses shut down.
Powell said that when businesses like grocery stores, restaurants, or gas stations hire more workers, they need to make money. To cover these higher labor costs, they will raise their prices, which can have negative effects.
Representative Justin Pearson (D-Memphis), who is sponsoring the bill, knows it would set the highest wage in the country. However, he believes Tennessee should lead in providing decent pay.
Pearson said, “I believe more people are seeing that if we don’t take serious steps to raise wages, we will keep facing ongoing poverty in our state and in our struggling communities.”
He tells small business owners that this rise will actually help them.
“They will have more money, especially from people who have extra cash to spend.” Studies show that workers are more motivated to go to work and be efficient when they have more money. Pearson said that small businesses and larger ones will both profit.
Pearson said he wants to start at twenty, but he’s open to negotiating.
“I believe we should raise the minimum wage in Tennessee from $7.25 because it’s too low.” Pearson said he would back finding a common agreement with his colleagues for a graduation fee of $15 this year, $17 next year, and $20 the following year.
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