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ROBERT L. EHRLICH, JR., Governor H.B. 391
Speaker of the House
State House
Annapolis, Maryland 21401
Dear Speaker Busch:
In accordance with Article II, Section 17 of the Maryland Constitution, today I have
vetoed House Bill 391 - Labor and Employment - Minimum Wage - Increase for the
following reasons.
First, raising the minimum wage in Maryland without raising the federal minimum
wage is a bad decision that elevates politics over economics and ultimately hurts the
people it claims to help. Raising the minimum wage harms most severely those
government should help the most - the least skilled and least educated in our
workforce. In fact, more than half of minimum wage workers nationally are of high
school or college-age, and minimum wage jobs for them are a means by which to enter
the labor market and acquire skills necessary for career advancement.
Employers have few options to recover the increased costs imposed by government.
They can either pass along these new costs to consumers or they can cut their costs by
firing their employees. Given our close proximity to Pennsylvania, Virginia, and West
Virginia, all of which still follow the federal wage rate, the State of Maryland would
be at a competitive disadvantage when competing to attract and retain businesses.
Likewise, Maryland employers would have higher labor costs than in neighboring
states and would be at a significant competitive disadvantage when competing for
new business.
This may most adversely affect small businesses, which often can only afford to pay
their employees the minimum wage (or slightly above it) in order to stay in business.
These Maryland small businesses do not have the resources to absorb yet another
government mandate, and since their customers will be free to choose products from
cheaper competitors located in neighboring states they will most likely have to fire
employees to stay afloat.
Second, for the first time in Maryland history, the Legislative Branch is seeking to
sever Maryland's minimum wage from the federal minimum wage. This action sets a
dangerous precedent that disrupts the marketplace as businesses face the
uncertainty of whether Congress, the General Assembly, or both will enact the next
wage increase, or tackle any other business issue, such as mandating minimum
spending on health care.
I believe that each working person deserves an appropriate wage that reflects his or
her work, skill level, and productivity. Accordingly, I believe employment and
education provide the necessary foundation for future success in life. Raising the
minimum wage reduces employment opportunities for those who need it most,
thereby limiting an individual's training, experience and skills. For the above stated
reasons, I do not believe Maryland should break from its long history of respecting the
federal government establishing a minimum wage. Accordingly, I have vetoed House
Bill 391.
Very truly yours,
- 4065 -
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