A 70-cent hike in the federal minimum wage rate took effect Friday. While some employees making the previous hourly scale of $6.55 are likely to rejoice a raise to $7.25, some business owners will not.
Larry Herring, owner of Frank & Mary’s restaurant in Pittsboro, said any increase in minimum wage is “definitely an inflationary thing. We have to raise our prices to meet the cost.”
Chris Spires, who owns the Chick-fil-A restaurant in Plainfield, agrees. Most of his employees were making more than minimum wage until this latest rate hike.
“What’s happened with this new increase is we’ve run into employees who’ve been with us a while are now suddenly making minimum wage again,” said Spires.
Other workers who have been at the business for a time but are not making much over minimum wage also start clamoring for a raise.
“From now on, because of where we’re at, we’ll probably be starting more people off at minimum wage,” said Spires.
Indiana is one of 31 states affected by the minimum wage increase. Other states — such as California, Illinois, and Ohio — have rates higher than the fed’s.
A chief argument for mandating a minimum wage is to keep workers with families out of poverty. The U.S. Bureau of Labor Statistics doesn’t compile data on the number of workers making at or below minimum wage who also have children. But in its 2008 figures, there are 471,000 workers nationally who are married and making at or below minimum wage and are 25 years or older. For those 16-24 years who are married, it’s 61,000.
At 25.9 percent, the age group 20-24 has the highest percentage of workers at or below minimum wage. Those ages 16-19 come closest to that at 24.5 percent. An overwhelming majority of minimum wage workers (57.9 percent) have a high school diploma or less. The majority of them also work in food service.
That kind of data bothers business owners like Herring the most.
“They’re saying raising (minimum wage) is for those raising families,” said Herring, who employs about 30 minors. “Well my 16-year-old employees aren’t raising families. It really needs to be based on those 18 and older. Ultimately you don’t hire as many kids. You start to get rid of them, then they don’t get to make any money. It puts them back out on the streets.”
Added Spires, “The majority of people who make minimum wage are teenagers. This argument that families can’t survive on minimum wage — most families aren’t making minimum wage.”
In fact Spires tries to hire employees as young as 14. He’s no longer sure if he can do that.
“The thought is I can give them their first job and mold them into an employee that would be with me for three or four years,” he said. “But when you’re talking $7.25 an hour, that’s tough when you’re talking about a 14-year-old.”
In his presidential campaign, Barack Obama called for the federal minimum wage to increase to $9.50 an hour by 2011. Spires hopes that doesn’t become reality.
“I hope they don’t bump it again, because all it does is squeeze the middle class,” he said. “What inevitably happens is businesses have to raise their prices to cover their costs.”
wade.coggeshall@flyergroup.com
Local News
Minimum wage increase takes effect
- Local News
-
-
Students say good-bye to PHS
PLAINFIELD — The Class of 2012 is the first to spend all four years at the new high school building in Plainfield.
-
Commencement held for BDU students
INDIANAPOLIS — Setting goals and making dreams come true was the theme for the Ben Davis University High School commencement held May 26.
-
SLIDESHOW: BDU commencement ceremony
The Ben Davis University High School graduation ceremony took place May 26.
-
CHS seniors graduate, show a little humor
CLAYTON — The graduating seniors at Cascade High School celebrate commence with light hearts and clear intentions.
-
SLIDESHOW: CHS graudation
The Cascade High School Class of 2012 graduation ceremony was held May 26.
-
500 Festival hosts memorial ceremony
There is nothing more honorable for a man to give his life for his country.
For all of the Hoosiers who have given the ultimate sacrifice and died in the defense of the United States, the 500 Festival hosted its Annual Memorial Service on Monument Circle Friday.
-
Avon council turns down transit request
Greg Ballard, mayor of Indianapolis, recently developed a letter regarding the support of a referendum on transit funding and had asked other local communities to sign the letter.
-
Community gets peek behind the scenes at IMS
For one sunny day, fans of open wheel racing got a peek under the Indy 500 hood, so to speak, as the Indianapolis Motor Speedway put on its annual Community Day.
-
Local family fights back for cure against rare genetic disease
-
County looks to battle water illnesses
The week prior to Memorial Day serves as National Recreational Water Illness Prevention Week.
- More Local News Headlines
-
Biden Addresses West Point Graduating Class
Dozens of Children Killed in New Syria Attack
Raw Video: Activists Allege Massacre in Syria
NJ Man Charged With Murder in Death of Patz
Support, Fun for Kids of Fallen Soldiers at Camp
Fugitive Penguin Caught, Returned to Aquarium
50 Years Later, Underground Fire Still Burning
Light Show Transforms Sydney Opera House
Raw Video: Unruly Passenger Restrained in Miami
Raw Video: Robber Uses Drive-thru Window
Raw Video: Dragon Arrives at Space Station
Calif.'s Coronado Named Nation's Best Beach
CEO Salaries Become Sore Issue in Labor Disputes
Raw Video: Fight Erupts in Ukrainian Parliament
Texan Ranchers Remain Wary of Drought
Raw Video: Soldiers Plant Flags at Arlington
Police: Man Arrested in Etan Patz Disappearance
NYC Protests: the Revolution Will Be Scripted
Chicago U.S. Attorney Fitzgerald Resigns
Neighbors of Etan Patz's Suspect: It's Shocking
