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  FOR IMMEDIATE RELEASE
June 18, 2014

NEW STUDY SHOWS PROPOSED LEGISLATION WOULD ELIMINATE 16,500 JOBS IN WISCONSIN

Leading Economist Finds State Wage Increase Would Cost Taxpayers $69 Million Annually
Restaurant Industry Workers and Women Singled Out

A new study released today shows that proposed legislation to increase the minimum wage would eliminate 16,500 jobs – nearly half of which are held by women. According to data from the Census Bureau, the wages of approximately 34,000 state and local public employees would be affected by a $10.10 increase in Wisconsin, for a combined cost to taxpayers of over $69 million annually.

“As our state’s economy begins stabilizing and adding jobs, now is not the time to prevent hiring and squeeze business owners’ already razor-thin bottom lines,” said Ed Lump, President and CEO of the Wisconsin Restaurant Association. “We should focus on commonsense solutions that create jobs and promote opportunities for workers of all experience levels. Across the board wage increases will hurt those who need help the most.”

The study, authored by Dr. David Macpherson of Trinity University, outlined the negative impact on employment and local budgets due to an increase in the minimum wage – specifically the high loss of employment and the unwanted cost to taxpayers.

According to the study, while many industries would be impacted negatively if the wage were increased, three sectors would be hit the hardest: retail trade; arts, entertainment, recreation, accommodations and food services; and education services. The restaurant industry — particularly tipped workers — would be especially affected.

Full text of the Wisconsin study can be found at www.wirestaurant.org/pdf/2014_MinWage_Study.pdf

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Wisconsin Restaurant Association • 2801 Fish Hatchery Rd. • Madison, WI 53713 • Tel: 608.270.9950 • Toll Free: 800.589.3211 • FAX: 608.270.9960