Businesses Concerned About Minimum Wage Raise

[pennypinch]

Many businesses are concerned over the impending minimum wage raise set to take affect next week in some 26 states and in D.C. The minimum wage will rise to $6.55 per hour, it is currently set at $5.85 per hour. This is the second wage hike in a series of three mandated in 2007 by the Fair Labor Standards Act.

With commodity, fuel and insurance costs hitting record highs, small-business owners are anxious about next week's federal minimum wage hike, which will require employers in 26 states and the District of Columbia to raise their base to at least $6.55.

As next week's wage hike approaches, small-business owners such as Joy Kealey view the mandatory increase as another frustrating pinch on profits.

By Brandi Stewart

I think this is great in one way and will be harmful in another. It is great news to the workers in these states, many of whom are not making enough money to make ends meet. The downfall is surely to be, companies will have to cut jobs or close completely because they won't be able to afford to pay the extra wages. I think it may be a no win situation.

Minimum Wage Raise

[moneysense]

Well, the raise was a long time in coming and is so badly needed right now. Yes, it might be hard on the businesses but when you figure they make $5 m in profits some years, its time to trickle those profits down to the ones that need it the most.

At $5.85 an hour on a part time job, or for that matter on a full time job, its hard to afford gasoline, let alone pay your bills and buy groceries.

The companies can afford to tighten their belts a little with the kinds of profits they make while the little guy doesnt have anything left to tighten at all.

And this winter will be even harder on the minimum wage employees. So good for them.