Rob O'Donnell recently received a message from a small business owner in NEPA yesterday, that tells me she employs 9 full time employees with overlapping shifts 6 days a week, in addition to her and her husband.
She currently pays $12-14 dollars an hour to a team who are 18-29 years of age. With the average of $13/hr a mandated $15 minimum wage will cost her an extra $720 in salary per week. Adding FICA, Workers compensation, unemployment, adds $785 per week or $3,140/month ($37,680/annually).
Considering their profit/loss margin monthly after costs is anywhere between -$1200 to +$6000 with a annual average of a profit of $4800/month, will make it difficult to weather months of loss or minimal profit as margins are so thin. (The $37,680 extra labor cost would be 65% of their annual revenue)
To neutralize the risk and increase labor costs they will have to lay off 2 employees saving $3,800, possibly changing FT workers to part time. As a note they currently pay 9 employees a total of $270k in salaries annually.
O'Donnell ponders the following:
What happens to the two employees downsized?
What happens if they go out of business?
What about the goods or services they supply to the community?
With less competition do local costs rise?
The business and wage taxes not paid?
Just one story of a very small business, and the reality of government intervention where the market should control what services are worth.
Nov 06, 2026
