Abundance Properties in Minneapolis planned to hire new workers in 2025, but that may not happen. Keaveny Drug in Winsted may have to limit or stop supplies.
After a year of inflation and uncertain economic conditions, Minnesota’s new laws add another layer of expense, forcing some businesses to make decisions that prioritize stability over growth, owners said.
“If anything, [the new laws] definitely make us reevaluate to make sure it’s financially feasible to have this new employee on the payroll,” said Jordan Crockett, co-owner of Abundance Properties. “We really have to make sure it makes sense.
A higher minimum wage, new health insurance mandates, higher unemployment insurance costs and an inflation-adjusted gas tax all went into effect Jan. 1 in Minnesota.
Business experts say the laws will hit small businesses the hardest, especially outstate. And they fear the collective impact of so many changes at once.
“The cumulative impact of these measures, from increased taxes to tighter regulations, poses significant challenges for Minnesota employers and employees,” said Laura Bordelon, senior vice president of advocacy at the Minnesota Chamber of Commerce.
Higher unemployment tax stings, “but we’ll just smile and pay it. It’s just another expense for us without any benefit,” said Deb Keaveny, owner of Keaveny’s Pharmacy. She noted that some of her 14 employees have worked at Keaveny Drug in Winsted for 30 years.
Higher gas tax and other costs come at a difficult time independent pharmacies. Hundreds of them have been closed in the past five years because they are trying to compete with big chain pharmacies and pharmacy benefit management companies that set copayments for patients while setting prescription reimbursement rates for pharmacists. Pharmacists complain that these rates often fall below their operating costs.