Owner of construction company says $15 minimum wage would hurt small businesses the most

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Small businesses are hurt 'the most' by $15 minimum wage, says Baltimore business owner

Baltimore construction company owner Corina Morga says that the $15 federal minimum wage proposal will have larger consequences for small businesses versus large corporations.

A construction company owner from Baltimore, Maryland said Thursday that small businesses would be negatively impacted "the most" by a proposed $15 federal minimum wage.

During an appearance on "America’s Newsroom" Corina Morga, owner of C.R. Construction, explained that companies like hers would inherit the cost from the mandate, thus putting a hiring freeze on projects as small businesses are priced out of local contracts.

"When we are talking about wealth and equity for minority businesses like myself, you know small businesses are the way to get there," said Morga during an interview with Bill Hemmer. "We’re the economic drivers of this economy so to cut us out with this policy is insanity."

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Morga added that an argument against the proposed mandate is not an argument against people attempting to earn a livable wage since small businesses are already providing better wages to employees in order to compete with each other locally.

In her criticism of the proposed mandate, Morga explained that cooperation with people on the local level is integral since developers currently negotiate funds for wage scales with contractors to determine who will win construction bids.  

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One of the main proponents of the federal minimum wage increase is Sen. Bernie Sanders I-Vt., who called for the support of the mandate in a Senate budget hearing.

"Will you at this point commit to doing what President Biden and I and many others want to see happen," Sanders said. "And that is move to end starvation wages in America by raising the minimum wage over a period of several years."

On Wednesday, Democrats on the House Committee on Education and Labor approved a $15 minimum wage to be included in Biden’s coronavirus relief package.

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According to a recent study released by the Congressional Budget Office, increasing the federal minimum wage from $7.25 to $15 an hour by the year 2025 would cut jobs by 1.4 million but help roughly 900,000 Americans out of poverty.