Hagåtña -- The Guam Chamber of Commerce has consistently and historically supported a market-driven approach to wage policy. We believe that wages should be determined by economic conditions and competition within the labor market, rather than by automatic government mandates. This position is rooted in long-standing free-market economic principles that guide our advocacy efforts on behalf of businesses of all sizes.

While indexing minimum wage to CPI is not unprecedented in other jurisdictions, Bill No. 4-38 introduces a unique and unprecedented framework for Guam. As currently drafted, the measure incorporates no statutory safeguards, exemptions, or economic pause mechanisms, which are commonly included in similar legislation elsewhere in the United States. The absence of such protections raises concerns about:

• Uncontrolled and automatic annual increases in the minimum wage, independent of economic conditions;

• The potential impact on small businesses, the tourism sector, and Guam’s broader economic competitiveness; and,

• The elimination of future opportunities for employers and stakeholders to provide input before increases occur.

Given the potential long-term implications of this bill, the Chamber is initiating outreach to its membership to gather feedback and assess the full range of perspectives within the business community. This consultation process will guide our organization in forming an informed and representative position on Bill No. 4-38 and in shaping any advocacy efforts moving forward.

We remain committed to working collaboratively with policymakers to ensure that wage policy in Guam balances the well-being of our workforce with the economic realities facing employers across the island.

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November 18, 2025