Frederick, Who Advocated for a Small Business Carve-Out, Again Warns Wage Hike Could Hurt Local Operators

Senator Hubert Frederick once again used the Senate floor to warn that a higher minimum wage could hurt small businesses, particularly those serving cruise passengers and visitors, even as lawmakers moved forward with legislation to raise pay across the territory.

During Monday’s legislative session, Frederick reiterated his concerns that mandated wage increases could place additional strain on small, locally owned businesses. Frederick, who owns at least two small businesses — a laundromat and dry cleaner, and Island Insurance Company — said he had attempted to advocate for small businesses through an amendment that ultimately was never filed. “Because I can’t get the support,” he told colleagues, explaining why the proposal did not advance.

Frederick said the amendment would have created a special carve-out for small business owners who may be unable to absorb higher labor costs. He emphasized that his objections were not rooted in opposition to higher wages, but in what he described as the practical realities faced by small operators.

“It had nothing to do with what people make. This had everything to do with creating jobs and opportunities for small, mom-and-pop businesses,” Frederick said, explaining his earlier hesitation with Bill 36-0030, which amends Title 24 of the Virgin Islands Code to increase the minimum wage. “If you want to grow this economy without raising taxes…you have to grow it organically, by growing businesses,” he argued.