IES Press Releases

IES Weighs in on How a Minimum Wage Increase Affects Business – American Express

April 08, 2019

American Express interviews Innovative Employee Solutions President & CFO, Peter Limone on how might a minimum wage increase affect your business.

See full published American Express article here.

Minimum Wage Increase Could Mean Reduced Hiring

Given the extra expense of wage increases, businesses are likely to cut back on hiring, believes Peter Limone, president and CFO of Innovative Employee Solutions, a provider of employer of record services, including outsourced payroll.

“Conduct a survey of clients to determine the impact of a price increase to offset a minimum wage increase… Implementing a price increase strategically may be best, compared to increasing pricing across the board.” —Peter Limone, president and CFO, Innovative Employee Solutions

“Some businesses may automate to reduce the number of jobs, while others may close their doors due to reduced profitability,” says Limone.

When faced with a minimum wage increase to $15 per hour in San Francisco, Andrew Bellay, owner of MetaNeer Labs, a software development firm, responded by transitioning to outsourcing.

“I now hire developers, designers and writers all around the world, which is less costly,” he says. “This also allows me to only pay for services when I need them, rather than 40 hours a week for full-time employees, plus benefits.”