1. Municipal living wage ordinances will result in higher municipal taxes to pay for the increased cost of contracts.

Research on many Living Wage campaigns across the United States has demonstrated that governments and consumers absorb little or no extra cost as a result of living wage increases. Research from the Los Angeles campaign estimates cost increases at approximately 1% of production costs for the affected companies. Increased costs have been offset by cutting costs in non-wage areas, raising prices slightly, and phasing in the ordinance.

2. Implementing a living wage will result in job losses, especially impacting young people and those just entering the job market, such as recent immigrants.

There is little evidence that significant job losses result from the introduction of living wage ordinances. Studies from areas in the United States where limited living wage ordinances have been introduced have shown either small or no employment loses as a result of adopting living wages. Part of the reason is because of the gains made in productivity and decreased turnover and training costs, which help offset the costs of higher wages.

3. Living Wages are not needed because the majority of low wage earners also receive benefits, tax credits and other subsidies that raise them above the poverty line.

Keeping wages low enough to ensure that moving up to or above the poverty line is dependent upon accessing subsidies is one way to ensure that people remain in poverty. To lending institutions, such benefits are not considered income and therefore do not contribute to the worker’s creditworthiness, reducing their ability to apply for credit cards or loans.

We also need to ask why taxpayers should subsidize employers who pay low wages through social assistance programs that enable low-wage earners to survive.

4. Living Wage laws will result in low skilled workers being replaced by highly skilled workers, harming the very workers it is meant to help.

Again, this is a claim that is not supported by research. Low wage jobs are, by definition, jobs that do not require highly skilled workers. Research indicates that increased wages result in better retention of low skilled workers with related spin-off benefits to employers.

5. Small business owners and non-profit agencies will be most adversely impacted by a living wage.

Again, there has been little empirical evidence that living wages lead to job losses. Some small firms, especially when it comes to bidding for municipal contracts, actually benefit from living wage ordinances because they are able to compete with larger businesses which enjoyed an advantage due to lower costs resulting from low-wages rather than quality.

To address these concerns, many communities have exempted non-profits or have structured their living wage laws to not apply to firms with fewer than a certain number of employees. This eliminates this concern entirely.

6. Some jobs just aren’t worth high wages.

No matter what job is being performed, workers deserve to be paid enough to have adequate food and shelter and to live a life of dignity, health and safety. Low wage jobs are frequently physically demanding or involve unpleasant but necessary tasks, and workers doing these jobs deserve a fair wage.

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