Jul 24, 2009 5:55 pm US/Central
Minimum Wage Hike Has Big Impact On Few Affected
MINNEAPOLIS (WCCO) ―
-
-
"We're going to have to cut back," said Anthony Polski, a third-generation restaurant owner. "Hours are going to have to be changed. We're going to have to tighten up."
CBS
Minimum wage workers have reason to celebrate. Many of them got a raise Friday. The federal minimum wage is now $7.25 an hour, up 70 cents from $6.55.
"I didn't even know about it," said Whitney Rozowski, a server at
Market Bar-B-Que. She's looking forward to seeing more money in her paycheck. "Even a $50 difference is a huge help."
The wage hike may help Rozowski, but it's hurting her boss.
"We're going to have to cut back," said Anthony Polski, a third-generation restaurant owner. "Hours are going to have to be changed. We're going to have to tighten up."
Professor George John is with the University of Minnesota Carlson School of Management. He describes the typical minimum wage earner as a teenage busboy.
"The actual number of people making minimum wage is much smaller than we think it is," said John. "Most of those folks actually make somewhat more than that."
There are exceptions to the wage hike. Minnesota employers can still pay a training wage to workers under the age of 20 during their first 90 days of employment. Small employers with annual sales of less than $500,000 can pay $5.25 per hour as long as they don't engage in interstate commerce.
Minnesota's minimum wage for federally-covered employers is $6.15 an hour, but it's superseded by the federal law. According to the Minnesota Department of Labor and Industry, the law which gives employees more benefit is the one that goes into effect.
The wage hike comes at a bad time for restaurants which are struggling to fill seats.
"There are plenty of restaurants going out of business, and this isn't helping," said Polski.
"This isn't going to make or break the economy," said John, "but if you're in one of those corners of the economy where this is a big deal, it is a huge deal to you."
Whitney Rozowski, Anthony Polski, George John, University Minnesota, Carlson School Management
Paula Engelking, Producer
Contact Paula
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
'She Wears Your Tee:' A Minn. Creation
Click to enlarge
Stumble It!
