Minimum wage increase passes House

[gtalum]

Do you pay their health insurance?

Yes, we have a pretty good plan, and everyone is eligible at 90 days. Those who refuse health insurance for whatever reasons get an extra $1 per hour in wages instead.

[Pburgh]

Let me get this straight - you pay the entire amount of their health care and if, after 90 days, they decide not to participate in the plan, they then make $12 per hour. Is that correct?

[gtalum]

Let me get this straight - you pay the entire amount of their health care and if, after 90 days, they decide not to participate in the plan, they then make $12 per hour. Is that correct?

Right. They're eligible for health insurance at 90 days (health insurance company's rules, not mine, but it works out) and get $12 per hour (instead of $11) if they choose not to participate. Plus I have a fairly quick raise schedule after that. I believe in keeping good employees happy and uninterested in looking elsewhere. In the end it's far cheaper than being cheap with wages and benefits and having high turnover.

[Pburgh]

Well, you are in the minority and you are very lucky. Most companies cannot afford to pick up the entire bill for health care. (our guys pay 15%) We have 100% $10 co-pay, free dental, vision, std and life insurance. We have 50 employees and our pay rate is very good, however we could not afford to increase our employees' pay by $2 per hour. Yours would be an increase of $30,000 per year in salaries alone. Hmmmmmmmmmmmmm

Nope, I'm blonde, but I don't believe that would be a hit you would be willing or could be willing to take.

[angelwing]

My day full-time job has insurance benefits, it would cost me $1200/month out of my pay, so I didn't opt for it and get $3.00 more an hour. My second job is where I have my benefits, I'm making less but they only take out $250.00/month and the benefits are a ton better than the first job's would have been! Go figure.

[gtalum]

Well, you are in the minority and you are very lucky. Most companies cannot afford to pick up the entire bill for health care. (our guys pay 15%) We have 100% $10 co-pay, free dental, vision, std and life insurance. We have 50 employees and our pay rate is very good, however we could not afford to increase our employees' pay by $2 per hour. Yours would be an increase of $30,000 per year in salaries alone. Hmmmmmmmmmmmmm

Nope, I'm blonde, but I don't believe that would be a hit you would be willing or could be willing to take.

I already said I wouldn't like it, and FWIW I really don't support a minimum wage increase. But my net profit is significantly more than $30k per year, so I could do it if I had to.

With steadily growing business, it's just a matter of time before my net profit would overtake the cost increase anyway. My costs for everything go up all the time. A majority of my raw materials are petroleum based. Insurance goes up by a large chunk every year. Property taxes skyrocket every year because of course my business is not Homestead exempted. Increasing costs are just a fact of doing business. You just have to find ways to continually increase income and efficiency to cover it all. On the bright side, when costs go up, ~35% of that is covered by a decrease in what I would owe in corporate income tax.

[gtalum]

I would love to be in an industry or business like yours where almost nothing affects your healthy margins. Amazing

Well that's not exactly true. Of course things affect my margins. But then I find ways to get them back to where I need for them to be. I also am constantly fishing for buyout offers just in case the margins get too thin and I need to jump. It doesn't pay to get emotionally attached to a business.

[Lindaloo]

Telling someone to rethink their business was very innappropriate.

The most common mistake small business owners make is to become emotionally attached to their business so that they cannot let it go under any circumstances, even when it's the best thing to do. That's how people end up financially ruined.

If margins are so thin that a $2 per hour raise for your employees will put you under, it really IS a good time to rethink the business plan.

Well, not to sound mean or anything, but I would not work for you.

How in the world can you possibly expect your employees to not get attached and possibly make you more money? All I can say is HOO BOY!!

[gtalum]

Well, not to sound mean or anything, but I would not work for you.

Aww I'm not such a bad guy. I have almost no employee turnover. Before September 2006, I hadn't had to hire anyone or let anyone go for over 6 years. I hired a guy in September because I had one guy retire on October and another guy is retiring in April so I'm hiring another person in the next month or so. People seem happy enough working for me.

How in the world can you possibly expect your employees to not get attached and possibly make you more money? All I can say is HOO BOY!!

Interesting point. This is exactly why I own my own business. I don't want to have my decisions made by anyone else. I want to be responsible for my own destiny. If I fail, it will be 100% my own fault.

[gtalum]

Though the guy I just hired in Septmeber may not work out. He complained about me askign them all to come in this past Saturday to do some roof repairs. I of course compensated everyone at time and a half (plus a free lunch!). I mean seriously, who whines about occasional overtime especially when they're being paid for it?

[Pburgh]

Doesn't sound like he is too motivated. Not your type.