Dothan businesses concerned about costs caused by increased minimum wage

Local News

DOTHAN, Ala. (WDHN) — As businesses around the Wiregrass begin to heal and move forward since the pandemic shutdown, they now have another fear looming in the near future: a possible federal minimum wage of $15.

With President-elect Joe Biden to soon be sworn into office, he hopes to raise the wage to help decrease unemployment, but some businesses explained they just can’t make $15 per hour happen.

“When you push the minimum wage to 15, what about the people that are making $15 now?” SDI Security Owner Alan Clark said. “They want to go to $20, $21, $22 an hour. A business, my thoughts, can’t absorb that. What happens is when that goes up, milk goes up, food goes up, everything goes up. It’s a vicious cycle it never ends.”

If this plan is put in place, some places will not be able to afford supplies or certain employees due to the higher pay everything will require.

Even places that budget out their finances know that this could be a huge push back, maybe even more than what was felt from the pandemic.

“I mean there’s no way I can afford three or four employees in that wage market,” Wiregrass Technologies Owner Daniel Robison said. “I have a certain pool designed for, in my budget, for payroll, and once you get with payroll and payroll taxes and benefits, it’s just impossible to take that kind of it.”

Despite the scare, local businesses are still looking ahead to the rest of this year and hoping for the best.

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