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General Assembly approves increase of minimum wage to $15

Governor signature needed to become law
June 22, 2021

Increasing Delaware's minimum wage to $15 an hour is just a signature away from becoming law after passing the House on June 17.

The passage of Senate Bill 15 by the General Assembly brought out comments from business owners, both in favor of and against increasing the minimum wage.

Rehoboth Beach business owner Ryan Peters of RISE Fitness + Adventure said paying a $15 minimum wage is good business. “Employees have more pride in their work and are more invested in our company. We save money on costly turnover, and our dedicated staff keep our customers coming back,” he said in a statement released by Business for a Fair Minimum Wage.

Kristen Deptula, owner of the Canalside Inn in Rehoboth Beach, said in the same release, “Happier employees make for happier customers, and that drives our success in the hospitality industry. The economy reflects a continuous cycle of earning and spending, so when workers are making more money, they spend more, boosting our economy.”

Even before the bill passed, however, area businesses have been advertising salaries above a $15 minimum wage, and many continue to have difficulty finding employees for the busy summer months.

Gov. John Carney has not yet signed Senate Bill 15, which will increase Delaware's minimum wage of $9.25 to $15 an hour by 2025. The minimum wage will increase $1.25 in 2022; $1.25 in 2023; $1.50 in 2024; and finally $1.75 in 2025.

The bill passed the House 26-15 with no Republican votes on June 17; it passed the Senate March 18 by a 14-7 vote, also along party lines.

The National Federation of Independent Business in Delaware, which represents hundreds of small businesses across the state, echoed sentiment against the bill given by dozens of local small business owners during public hearings held in both the House and Senate before the bill was passed.

NFIB State Director Mike O’Halloran said passage of the bill is devastating for many mom-and-pop shops across the state that continue to struggle from last year's economic shutdown.

“Small business owners are very disappointed at the Legislature’s actions to increase the state’s minimum wage to $15 per hour. This is a push by out-of-touch legislators that adds insult to injury after small business owners, who have already been devastated by the COVID-19 pandemic, are finally starting to see the light at the end of the tunnel,” he said in a statement. “As you know, so much of Delaware’s economy depends on tourists. Increasing the minimum wage for the small business owners on our beaches and destinations means that not only tourists, but everyone in Delaware will have to pay more for the food they eat and the services they rely on.”

 

 

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