Business owner warns of layoffs from New Jersey payroll legislation impacts

In a recent meeting of the New Jersey Assembly State and Local Government Committee, business owners expressed deep concerns regarding proposed legislation that could significantly impact their operations and workforce. The discussions highlighted the potential adverse effects of the bill, particularly on small businesses and their employees.

One business owner, who operates two establishments, GIPS and Pete and Eldas, shared his contingency plans should the legislation pass. He emphasized that while he believes the bill is proposed with good intentions, its financial implications could be devastating. For GIPS, he projected that payroll costs would more than double, making the business economically unviable after nearly 90 years of operation. He indicated that if the bill is enacted, he would be forced to demolish his restaurant and replace it with luxury duplexes, resulting in the loss of eight jobs.

At Pete and Eldas, the situation would also be dire, with payroll costs potentially tripling. This would necessitate cutting server staff in half, leaving approximately 25 employees without jobs. The owner explained that this reduction would not only affect their livelihoods but also diminish the quality of service, as remaining servers would be overwhelmed with increased table responsibilities.

In total, the owner estimated that the proposed legislation could lead to 30 to 40 layoffs across his two businesses, a significant impact given that he holds only two of the roughly 5,000 licenses in New Jersey. His testimony underscored the broader implications of the bill, raising questions about the balance between legislative intentions and the realities faced by small business owners and their employees.

As the committee continues to deliberate on the bill, the concerns raised by business owners highlight the need for careful consideration of the potential economic fallout and the importance of supporting local businesses in New Jersey. The discussions from this meeting will likely influence future legislative actions and the ongoing dialogue about the state's economic health and workforce stability.