Does Identity Theft Have Anything To Do With Minimum Wage?

The Affect Minimum Wage Increases Have on Identity Theft

Identity theft is a growing concern for everyone. Recently, however, concern for identity theft has been used as a basis to oppose a minimum wage increase in the state of Arizona. Wondering what identity theft has to do with minimum wage? You might be surprised…

What’s Proposition 202?

In Arizona, Proposition 202 consists of a state minimum wage increase. Many businesses are against raising minimum wage and have implicated concerns for identity theft to support their arguments. The Greater Phoenix Chamber of Commerce along with the National Federation of Independent Business opposes the state minimum wage increase. They contend that a minimum wage increase may lead to a higher number of identity theft cases due to the fact that wage disputes may allow identity theft criminals access to employee records. Their protests have taken on the form of a highly-organized campaign, including television advertisements. However, is identity theft really a valid concern in this matter, or is this just an instance of companies not wanting to fork out more dough to their employees?

A Diversionary Tactic?

Those who are in favor of the minimum wage increase and Proposition 202 claim that the concern with possible identity theft is just a diversionary tactic on the part of those who oppose it. Terry Goddard, the Arizona Attorney General, is fully aware of the consequences of identity theft, yet still does not believe that wage disputes will lead to identity theft.

This recent development brings up an interesting point. How far should we go to reduce the threat of identity theft? Is it justifiable to stop a minimum wage increase which can potentially benefit a large number of citizens just to minimize the small possibility of identity theft?

The threat of identity theft should never be taken lightly, but it seems that in this particular situation, opponents of the minimum wage tax increase are more concerned with the impact that increase will have on their businesses rather than the possibility that their employees will be greater risk for identity theft.

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