SALISBURY, MD - As revelers welcome the New Year, businesses across Maryland and Delaware are navigating the implications of an adjusted payroll due to a minimum wage increase taking effect today in both states. While this change is anticipated to positively impact hardworking employees, small businesses express concern about the financial strain it places on their operations.
The minimum wage in Maryland has risen from $13.25 (for businesses with more than 15 employees) or $12.80 (for businesses with less than 15 employees) to $15 per hour, while Delaware's minimum wage has increased from $11.75 to $13.25 per hour. For businesses in both states, this translates to increased labor costs and, in some cases, tough decisions about staffing.
Alex Scott, owner of The Brick Room in Salisbury, emphasizes the disproportionate impact on small businesses, stating, "They make these kinds of changes every couple of years for bigger corporations. For small businesses like myself, we do suffer the most when they do something like this."
Joe Wright, owner of Vernon Powell, expresses the inevitability of staff reductions, saying, "Unfortunately, we're going to have to cut some hours from some employees. It's that high school kid who's looking for their first job, and we start them out as a cashier. All of a sudden, we start them out at $15 an hour, and we can't afford to have a cashier."
Fred Adams, owner of Attic Antiques in Delaware, echoes these sentiments, warning, "It's going to cause businesses to go from having 14 employees down to 7. And one thing a small business like this can't even afford is a $13 an hour."
However, for employees like Nancy Messich at Vernon Powell, the wage increase brings positive prospects. "Having a bit more money means that I can travel more to see my grandchildren because gas is still so high. Prices are higher for everything, so it's nice to have a little bit more money coming in."
While the wage hike presents challenges for businesses, workers in Maryland and Delaware are welcoming the new year with some extra change in their pockets. Meanwhile, neighboring Virginia is not experiencing an increase in its minimum wage.
