The Durango Chamber of Commerce and the city of Durango are seeking feedback from business owners about how a minimum-wage increase could affect their enterprises.
Councilors are scheduled to discuss a resident-backed proposal to raise the minimum wage during a May 6 study session. The Chamber of Commerce distributed a survey on Tuesday to members and other business owners, inviting them to share their thoughts.
The survey asks how a minimum-wage increase could impact hiring, pricing, employee morale, competitiveness and scale of operations, among other things.
The Durango Forward movement, which supports increasing the minimum wage, asked City Council in January to consider its proposal and requested a study session.
The group proposes a 15% increase from the state minimum wage of $14.81 per hour to $17.03 per hour. Such an increase, if approved, would not take effect until next year.
Chamber of Commerce CEO Jeff Dupont said the minimum wage debate is nuanced and will require as much data as possible for councilors to make an informed decision.
He said raising the minimum wage could help people live more sustainably in Durango, helping them to afford housing costs, child care and other necessities.
Yet, he’s not convinced raising the minimum wage would make Durango more affordable.
“Minimum wage in our community is such a minor part of the workforce,” he said. “... My inclination is most of those minimum wage jobs are filled by high school students and college students that require maximum flexibility from business owners.”
Raising the minimum wage could cause employers to hire fewer workers, deciding the higher labor costs aren’t worth the investment of time and resources, he said. Workers already earning above the minimum wage would likely expect their wages to increase as well, he said.
Uncertainty already abounds with supply chain challenges and federal regulations, he said, and a higher minimum wage could further burden small businesses.
He expects a fair number of survey responses will show that businesses are already paying above minimum wage and may not be significantly affected by a wage hike.
Employment attorney Dave Albrechta said many local businesses already pay $17 per hour, which shows that raising the minimum wage is feasible and wouldn’t impact most employers.
He said raising minimum wages would help businesses retain employees and reduce costs associated with turnover and rehiring.
According to the Colorado Department of Labor and Employment, just four municipalities or jurisdictions have raised their minimum wages above the state level.
In Denver and Denver County, the minimum wage is $18.81, or $15.79 with a tip credit. In Edgewater, it is $16.52, or $13.50 with tip credit. The unincorporated areas of Boulder County have a minimum wage of $16.57, or $13.55 with tip credit. Boulder proper’s minimum wage is $15.57, or $12.55 with tip credit.
cburney@durangoherald.com
