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The Guam Legislature will hold another public hearing on Bill No. 4-38 on Friday, January 23rd. This bill would automatically adjust Guam’s minimum wage each year based on the Consumer Price Index (CPI). While addressing the cost of living is important, this approach poses real risks to local businesses, especially small and family-owned enterprises. Guam’s inflation is largely driven by imports, fuel, utilities, and external costs beyond local control. Tying wages to CPI means businesses could face unpredictable and automatic labor cost increases, even when revenues are flat, and other operating costs are already rising.
For many businesses operating on thin margins, these additional costs cannot be simply absorbed. The likely outcome is higher prices for consumers, reduced hours of employees, delayed hiring, or even worse, fewer jobs. Over time, this creates a cycle where higher prices drive higher inflation, triggering further wage increases and making affordability worse for everyone. This is why many in the business community believe the bill, though well-intended, could undermine the very goal it seeks to achieve.
Your voice matters. Lawmakers need to hear directly from employers about how automatic CPI-based wage increases would affect real businesses in Guam. We strongly encourage members to attend the January 23rd hearing or submit written testimony sharing your concerns, experiences, and perspective. Thoughtful input from the business community is critical to ensuring policies address the true drivers of cost and support both workers and employers.
The public hearing will take place from 4:00 p.m. to 6:00 p.m. this Friday, January 23, 2026, at the Guam Congress Building in Hagåtña.
*** End of Notice ***
January 21, 2026
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