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Wednesday, May 4, 2016

Minimum wage increases today

Thursday, July 23, 2009

(Photo)
The above graphic outlines how minimum wage laws in individual states compare to the Federal Minimum Wage Law. Green states indicate a rate higher than the Federal, blue states indicate a rate equal to the Federal, red states show those that have less then the Federal rate and yellow states are those with no minimum wage law.
Minimum wage workers will see an increase in their paychecks starting today.

The increase bumps up the Federal Minimum Wage to $7.25 an hour, which is a 10.7 percent increase compared to the current hourly rate of $6.55.

It is the third increase in as many years after former President George Bush signed off on the Fair Minimum Wage Act in May 2007, setting each increase at $0.70 an hour from the then-minimum wage of $5.15 an hour.

With the increases coming at a time where the status of the nation's economy in a constant state of flux, concerns have been raised about its affect on local and small business.

"It may affect some small businesses, but you still have to keep up with customer demand," Sam Crawn, owner of Sam's Do-It-Best Hardware, Brazil, said. "But it is required by law, and we have to do what the law says."

One of the major concerns associated with the increase of minimum wage is whether or not it would adversely affect employment.

"We run pretty lean so it won't change the number of employees we have," Crawn told The Brazil Times. "I could see it possibly affecting larger businesses, but a certain level of staffing has to be maintained to effectively serve the customers."

For employers with staff who may receive tips, the minimum wage remains at $2.13 an hour. However, the law states should the employees tips, combined with the minimum wage, do not meet the $7.25 an hour mark, the employer must make up the difference.

For one local restaurant manager, who requested to remain anonymous due to company policy, this stipulation wouldn't have much of an effect.

"Things really shouldn't change here," the manager told The Brazil Times.

Another concern regarding the increased wage rates surrounded the possibility of increased prices being placed on consumers to compensate.

"I can see where some small, or even large businesses may increase their prices to make up for the increased wages they are paying," the manager said. "But, I don't see it happening too much on the local level, and the prices shouldn't change here either."

There is one exception that allows employers to pay less than the Federal Minimum Wage to a select group of individuals in Indiana.

If an employee is under the age of 20, an employer may pay that individual an hourly wage of $4.25 during the first 90 calendar days after employment begins.

The increase to $7.25 is also going into effect today for the Indiana Minimum Wage Law, which covers employees not covered by the federal law.

Currently the State of Washington has the highest minimum wage at $8.55 an hour, while Kansas has a current rate of $2.65 an hour for those not covered by the Federal Minimum Wage Law, although it will be increasing to $7.25 an hour as of Jan. 1, 2010. In addition, five states -- Alabama, Louisiana, Mississippi, South Carolina and Tennessee -- do not have set required minimum wage.

For more information about minimum wage or other labor information, visit www.in.gov/dol.


Comments
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Um let me see, I've worked a state job for 7 years without any raises, my cousin just started a job and now she makes almost much as I do. Whats wrong with this picture?

-- Posted by Icareaboutbrazil on Fri, Jul 24, 2009, at 7:55 AM

I have never been an advocate of government meddling in commerce other than to protect the public health and safety. I view the practices of shoring up failing industries or companies through subsidies or bailouts and price setting of the cost of labor by government as interference in the, supposedly, free market system.

As Icareaboutbrazil has illustrated, raising the minimum that can be paid for labor effectively wipes out any benefit of having worked for years to earn more than minimum wage. If a person is making $8.00 an hour, yesterday they were making 122% of the minimum wage, but today they are making 110%. It looks like they just got a 12% pay cut even though they receive the same dollar amount in their paycheck to me.

-- Posted by Leo L. Southworth on Fri, Jul 24, 2009, at 10:24 AM

Sorry.. I must disagree. As long as we have unlimited immigration bringing in workers who will work for nearly anything we do need a wage system.. I do believe that every worker should get raises based on performance, not a mandate or simple longevity. But on many jobs either because they are entry level or basic you need a floor or starting rate.

It is not really like we are raising the minimum every year. As best I remember the last time it was raised was 1996 or 1997. How many employees in any job have gone over 10 years without a raise?

If we did not have a required minimum wage we would be at the mercy of any industry group that wanted to fix wages. Not everyone has access to a Union to regulate wage structures.

-- Posted by BackHomeAgain on Fri, Jul 24, 2009, at 2:08 PM

Absolutely no meaning. The socialist democrats have just screwed all of the kids trying to work part time or for the summer.

The reader who wrote that the illegal immigrants have totally destroyed this initiative is somewhat correct. I remember in 1977 working for Funk Bros detallising corn and making 2.00/hr (est) and everyone on the bus was a citizen, the 2 bucks meant something to everyone, single mothers, high school kids, etc. There were no illegals, but today, 10 bucks per hour doesnt mean squat. A deeper issue is that the reason that Mexican and Central American immigrants are coming here is that they are desperate, fathers and mothers are going to do what it takes to feed their kids, we have to change our foreign policy to make sure that our neighbors have their basic needs met. We have dumped countless billions into ratholes like the stimulus plan, and foreign aid to corrupt countries. Our Mexican neighbors have been neglected and we critisize them for pouring drugs into our country. IF we paid attention to their basic needs, shelter, food, etc, they wouldnt have an incentive to be the supplier of our vice.

-- Posted by classof1979bhs on Fri, Jul 24, 2009, at 9:45 PM

raise the rate and it will be passed on to the consumer. products will be higher, food, gas, and what ever else has a price tag on it. seems like a consumer never wins. go ahead and pay illegal immigrants what it took me 15 years to make. yeah, run the small business guys out of business, sounds like a stupid move to me. I guess I won't be able to take the job that was offered to me at $8.50 per hour as my baby sitter and taxes will be taking it all. what a sad commentary.

-- Posted by Tracy Jones on Sat, Jul 25, 2009, at 8:23 PM


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