POTENTIAL EFFECTS OF A MINIMUM WAGE INCREASE ON
UTAH BUSINESSES
Prepared for
Al E. Gator
State Representative
Utah State Legislative
Prepared by
Greggory Adams
Sam Flinders
Cody Thornton
December 9, 2014
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To: Al E. Gator
From: Sam Flinders, Greggory Adams, and Cody Thornton
Date: December 9, 2014
Subject: Minimum Wage Increase Analytical Report
Here is the report concerning the effects of minimum wage increase on Utah businesses.
We have gathered and collected data from local Utah businesses and look forward to
sharing this information with you.
We have made some recommendations that we believe will be helpful to you in making
future governmental policies.
If you have any questions please call us at 832.860.5815. We look forward to discussing
this with you.
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TABLE OF CONTENTS
Executive Summary iv
Introduction 1
Report Background 1
Report Purpose 1
Report Scope 1
Report Limitations 2
Research Methodology 2
Findings 3
Survey Results 3
Secondary Research 5
Conclusions 8
Recommendations 9
References 10
Appendix A – Minimum Wage Questionnaire 11
Appendix B – Proposal Memo 12
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EXECUTIVE SUMMARY
In 1938 President Franklin Roosevelt signed the Fair Labor Standards Act which
mandated a federal minimum wage. The minimum wage started at $0.25 equivalent to
$4.21 today. Since then the minimum wage has been raised several times. In the January
2014 State of the Union address, President Barak Obama proposed raising the minimum
wage to $10.10. This report was prepared to determine if this change is beneficial for
Utah businesses.
Secondary research was conducted by reviewing articles on the pros and cons of
raising the minimum wage. Surveys were given to six business owners and or managers
in Utah. Surveys collected information regarding the effects that raising the minimum
wage would have on their businesses, and how they would respond to the new financial
standard.
The results of the research are as follows: The majority of the businesses said that raising
the minimum wage would hurt their company financially. Most business owners stated
that the minimum wage isn’t meant to be a livable wage. As of 2013, 45 million
Americans live below the poverty line. Raising the minimum wage to $10.10 would
bring 900,000 out of poverty.
Based on the above findings, the following conclusions were drawn:
1. Most businesses are not in favor of raising the minimum wage and say that it will hurt
their company financially.
2. The minimum wage was not meant to be a living wage. It was implemented to help
employees want to work for something better.
3. A large percentage of minimum wage earners are between the age of 16 and 19.
Based on the conclusions, the following recommendations were made:
1. Rather than raising the minimum wage, business taxes should be decreased.
2. Other alternatives to bringing people out of poverty should be implemented, such
