Proposed $20 MA Minimum Wage Hits North Shore Business Opposition

BEVERLY, MA — A proposal that would raise the minimum wage in Massachusetts to $20 within four years is running into opposition on the North Shore from the Greater Beverly Chamber of Commerce leadership, which said such an increase on the heels of the increase that just elevated the wage to $15 as of Jan. 1 would result in more pain for small businesses, less hiring for workers and more price increases for consumers.

Greater Beverly Chamber of Commerce President Medley Long told the Joint Committee on Labor and Workforce Development at the State Capitol last week that the opposition was based on "feedback from our members on this topic, including cafes, gyms, restaurants, and more."

"We believe our stance on this issue is important to our members and small businesses in our region and state, "Long told Patch. "The Greater Beverly Chamber of Commerce was the only chamber to testify before this joint committee."

In a letter accompanying his testimony, Long said the Chamber — which represents more than 340 businesses on the North Shore with more than 4,000 employees — is concerned any further raise at this time would lead to higher inflation and could result in some businesses shuttering.

"The restaurant industry, like many others, operates on tight profit margins," Long said. "Many businesses are still trying to recover from the pandemic and are already paying above minimum wage to attract reliable employees for jobs that are typically considered entry-level or minimum wage positions."

Supporters of the proposed increase argue that the state's high cost of living — including housing and child care — necessitates a minimum of $20 as a "living wage" in Massachusetts. The minimum wage recently completed a staged increase from $11 to $15.

Under one of the proposals up for consideration, the $20 minimum wage would be in place by 2027 with the wage then indexed to the consumer price index so it would continue to rise along with inflation.

The proposal would also increase the minimum wage for tipped workers from $6.75 to $12.

California recently increased its minimum wage for fast-food workers to $20 — the highest rate in the country.

"The Greater Beverly Chamber of Commerce's mission is to foster a vibrant business community, and we firmly believe that an increase in the minimum wage at this time would have the opposite effect," Long told the Committee.

(Scott Souza is a Patch field editor covering Beverly, Danvers, Marblehead, Peabody, Salem and Swampscott. He can be reached at Scott.Souza@Patch.com. Twitter: @Scott_Souza.)