Raising federal minimum wage amid coronavirus will be a ‘disaster’ for US business: Andy Puzder
The increase to $15 an hour depends on the Georgia Senate election, Puzder said
Former CKE Restaurants CEO Andy Puzder believes that raising the federal minimum wage to $15 an hour would be disastrous for businesses, especially those suffering amid the coronavirus pandemic.
“Increasing labor costs for these businesses will be a disaster,” he said on FOX Business' “Varney and Co.” “Can you imagine what this $15 minimum wage would do at a time when we're seeing tens of thousands of small businesses close?”
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In its latest Local Economic Impact Report, Yelp reported more than 160,000 American businesses have closed, and across the country, both permanent and temporary closures are on the rise. In Puzder’s industry, nearly 17 percent of all U.S. restaurants -- more than 110,000 businesses -- have closed long-term or permanently, according to a National Restaurant Association study.
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While Puzder is hoping a national wage hike doesn’t happen, he’s not completely optimistic.
“I think it could happen depending upon what happens in Georgia,” he said, referring to the upcoming Senate runoff elections.
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“If we win those two seats, or even one of the two Senate seats, I think we'll be able to hold off on a $15 minimum wage,” he said. “Minimum wage really should be dealt with at the state or local level as it's being dealt with now. But, if we lose Georgia, it's game over.”
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Puzder went on to say that he’s “not very optimistic” about where the U.S. economy is headed if Republicans lose the two Georgia Senate seats.
FOX Business’ Julia Musto contributed to this article.