Elk Grove Chamber of Commerce opposes SB 57
March 2003

    The Elk Grove Chamber of Commerce opposes SB 57 (Burton), as amended on March 28, 2003, which mandates yearly increases of the state minimum wage by indexing the wage to the California Consumer Price Index in perpetuity.

     The Elk Grove Chamber of Commerce represents over 650 businesses in the Elk Grove area, the majority of which have less than 20 employees. Indexing of the minimum wage would have an immediate and direct negative impact on small businesses in California at a time when they are facing major increase workers’ compensation premiums, among other economic challenges.

     Several methods for changing the minimum wage rate in California already exist.An automatic indexing of the minimum wage as proposed in this bill would exclude the small business operators and all other businesses in California from meaningful participation in the debate over the minimum wage in California. These very businesses would be most severely impacted by these decisions.

    California’s minimum wage is already significantly higher than the federal minimum wage and that of most other states. To institute a system for setting the wage that would automatically increase it would be yet another barrier to businesses bringing needed jobs into the state and our local economy.

    For these reasons, the Elk Grove Chamber of Commerce urges a “NO ” vote SB 57.