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Minimum wage increases by 70 cents today
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The second of three federally mandated minimum wage increases goes into effect today, raising pay 70 cents from $5.85 to $6.55 per hour. The third and final increase to $7.25 is scheduled to take place one year from today. The wage change applies to nonexempt employees who are covered by the federal Fair Labor Standards Act.
Although the wage increase may affect more than a million people across the nation, Mary Ross, executive director of the West Central Texas Workforce Development Board, said this increase will have less impact locally.
"The first increase had significant impact on employers as it seemed to affect all levels of employees," Ross said. "This time, most employers have made their wage changes gradually. From data in employer's quarterly reports through April 2008, we believe only about 8,000 local entry-level employees will be affected with this increase."
TaMolly's Mexican Restaurant manager Michael Steele said the increase will involve only a small portion of the restaurant's 60 employees.
"About 20 of our entry-level employees -- those who bus tables, run chips and hostesses -- currently earn $5.85 to $6.25, so they will get a nice raise," Steele said. He said many of the entry-level positions are filled by teens or those who work part-time.
Steele also said that although TaMolly's will implement a small price increase on certain menu items in the next week, it has nothing to do with the minimum wage increase.
"Our corporate office notified us about upcoming menu price increases, but it is based on the rising food prices," he said. "Food costs keep rising, and we have to adjust with it."
John Gilliam, Albertson's store manager, said the grocery store is set for the change.
"Albertson's minimum wage was raised some time ago so we won't have to make any changes," Gilliam said. "We currently start our courtesy clerks (bag carriers) at $7.35 an hour."
Ross said data for the first quarter of 2008 shows Abilene's median wage is $11.25 an hour, while the average wage for entry-level positions is $6.61. She said child care workers, cashiers, carwash workers, table busers, convenience store clerks and stockers are a few of the positions that fall into the entry-level category.
According to data available online from the U.S. Department of Labor Web site, www.dol.gov, the average minimum wage in 32 states is above the newest increase. Twelve states, including Texas, follow the federal pay rate as the minimum, and eight states are either below or have no minimum wage level.
There are exemptions to minimum wage laws: workers who earn tips, young workers, certain full-time students, disabled workers and apprentices may fall under special certificates issued by the Department of Labor.
This summer is the 70th anniversary of the FLSA, which establishes minimum wage, overtime pay, record-keeping and youth employment standards affecting employees in the private and government employment sectors.
Posted by souljasister on July 24, 2008 at 2:17 a.m. (Suggest removal)
I don't get it. How have you'll managed to have minimum wage exemptions???
Posted by conserveABI on July 24, 2008 at 7:35 a.m. (Suggest removal)
"Although the wage increase may affect more than a million people...."
Let's be clear. Raising the minimum wage affects every single person who buys things because retailers must raise prices to offset this mandated raise. I manage a service business, and because my operating budget remained the same this year, the raise caused me to hire fewer employees for the year. They're on their own now. Good job, liberal government.
Posted by junebug on July 24, 2008 at 8:05 a.m. (Suggest removal)
Liberal government????? You do realize that, even though the Democrats have the majority in Congress, it is a very insignificant minority. Nothing can be passed in this Congress without cooperation from the right side of the aisle and without the cooperation of the President. The Democrats do not have a veto-proof majority . . . we still have a Republican controlled government . . . blame the correct party.
Just because you disagree with what has happened and just because you have identified yourself as a "conservative," doesn't mean that this is a "liberal" government . . . you just disagree with what they've done. Look up the terms "liberal" and "conservative." I'd bet money that the definition of "liberal" is not "a person or group who disagrees with me."
Posted by leroy on July 24, 2008 at 9:06 a.m. (Suggest removal)
The government isn't really "controlled" by either party today, but minimum wage increases were pushed by the Democrats (I'd say liberals, but you'll talk about the irrelevant textbook definition) in the Senate and House. How many years were the Republicans running Congress without any change to the minimum wage laws?
Posted by apricottx on July 24, 2008 at 9:23 a.m. (Suggest removal)
souljasister it is very unfair that waitresses/waiters and bartenders do not make minimum. They were making about $2.10/hour. I have not worked in that industry for quite some time. The lower hourly wage is based on the assumption that there will be a minimum 15% tip added to the tab for the restaurant/bar patron. Unfortunately in Abilene, tips are not, on average this good even for excellent service.
Anyway, that is why the exemption on that end. I do not know about the exemptions for students/disabled, etc.
Anyone out there know????
Posted by officerx on July 24, 2008 at 9:35 a.m. (Suggest removal)
I can't believe there are people out there against a raise for those who can't make it on what they were being paid. Doubt they will be able to make it with the raise, but it's a start.
There will be people who are against what is done just because the government did it and for no other reason. Thats a shame. There is some good things happening out there.
Posted by leroy on July 24, 2008 at 9:58 a.m. (Suggest removal)
If raising the minimum wage is good for those people on minimum wage, then why don't we just raise it to $100 an hour. They should be REALLY able to make on what they are being paid. The same logic applies.
Every study I've read about on minimum wage says it hurts employment, minority employment to be specific. So SOME people make more, costs for everything goes up, and those with the least skills can't find a job. That doesn't sound like a good idea to me.
Posted by leroy on July 24, 2008 at 11:07 a.m. (Suggest removal)
Bah more stupidity, minimum wage, lets increase inflation more and make every product you buy more expensive!
instead of the 99 cent value menu, the $1.59 value menu. Or a trend I am already seeing, let us not increase prices, but downsize staff. Going into some popular places that used to have 5-8 people working making fast foods now no longer have more than THREE at a time working.
So great you just gave 3 people a 'raise' and fired two people don't you feel great!
Posted by rampbrat on July 24, 2008 at 11:54 a.m. (Suggest removal)
So what was it like before minimum wage? During the Depression farm workers were allowed to eat the culls out of the field. That was their wages. My grandaddy worked for a dollar a day and that was considered a good wage, but the family still needed the kids to work and they raised much of their own food. True, prices were lower, but they still barely made ends meet. Ah, the "good old days"!
Posted by topo97 on July 24, 2008 at 12:21 p.m. (Suggest removal)
Prices will increase even if the minimum wage is not increased. Some business owners will find something to complain about. I find it funny that the folks that say prices will increase, and jobs will disappear seem to never notice the hiring signs posted all over town. Most places pay above the minimum wage if they want people.
Posted by leroy on July 24, 2008 at 12:32 p.m. (Suggest removal)
You're right most pay above the minimum wage, so why do we need this law? Prices increase MORE when the minimum wage increases. Abilene is not a good example of the national employment. Those signs were up before minimum wage increased.
How about $1 mil a year? That would be great, everyone would be a millionaire!!
http://www.capmag.com/article.asp?ID=...
Posted by Fordsandguns on July 24, 2008 at 12:52 p.m. (Suggest removal)
If there wasn't a set minimum wage, then employers would still be paying $3.95 or $4.75 per hour. They wouldn't let pay rates go up with the prices rising do to oil and fuel prices and other reasons. They'd keep it down to minimize THEIR losses in profit margin while their employees struggled. Think about a gallon of gas that costs almost as much or more than you make in an hour. That would be a killer on a single person let a lone a family. Of course, with the rate increase they will pass the extra cost on to the consumers. But they have already been doing that with the higher shipping costs too. They pass ALL of it on to us. Nothing new.
Posted by megjerden on July 24, 2008 at 1:17 p.m. (Suggest removal)
It looks to me like this is just throwing the dog a bone. Good luck living in Austin on 7.25 an hour.
Posted by leroy on July 24, 2008 at 2:28 p.m. (Suggest removal)
You're right they do always pass it on to us. So why do we help them by increasing costs?
If wages go down to 3 or 4, then why do Abilene employeers pay more than the minimum...to keep good, dependable employees. Economics controls how much an employee make...increasing minimum wage is a tool for politicans to get votes, not help anyone but themselves.
Posted by Mage on July 24, 2008 at 2:56 p.m. (Suggest removal)
ConserveABI
I'm sure you employer was delighted to find out you had uneeded people on the payroll who you could obviously do with out
Good job conservative middle management?????????????? I quess
Posted by topo97 on July 24, 2008 at 6:12 p.m. (Suggest removal)
For ten years the minimum wage did not increase, yet prices did, you can pretty much throw out that lame excuse. Low wage employees are more likely to spend their money locally, which in turns helps the local economy. You can't save or do much of anything but survive on it.
Posted by conserveABI on July 24, 2008 at 6:24 p.m. (Suggest removal)
Nice try, Mage. I now offer fewer services for fewer hours, and now clients have to wait longer. Whether or not I will be able to sustain this way remains to be seen.
topo97, prices increase for more reasons than employee cost; that's but one factor in the mix. If you think that raising an employer's employee cost won't come back to your wallet, then you're the one who's lame.
As for the discussion of liberals vs. conservatives: If you think that interference toward free market enterprise is, in general, driven by conservatives, then I have no more to say to your ignorance.
Posted by tiny on July 24, 2008 at 7:29 p.m. (Suggest removal)
Nice try conserve
If you cut customer service you are doomed.
You are telling me that 70cents per hour….$5.60 per day is worth
“offering fewer services for fewer hours, and now clients have to wait longer”
Your problem is not conservative or liberal. Your problem is poor management.
If you pay employees minimum wage, you have minimum employees. You couldn’t run my company
Posted by topo97 on July 24, 2008 at 7:31 p.m. (Suggest removal)
Exactly, don't blame the rising cost on raising wages. As for having slower service, don't expect your customers to understand. Like you said, the free market will dictate who survives. If the businesses had increased the pay on their own it would never have come to this. They were all just happy to keep the wages as low as possible.
Posted by conserveABI on July 24, 2008 at 8:07 p.m. (Suggest removal)
Actually, 123, I'd say making adjustments to stay afloat in the face of variances such as government interference is good management. However, I am truly not interested in your assessment of my managerial skills. And yes, I am telling you that .70 per hour cuts into my costs. And everyone else's.
I don't quite understand your last statement, but it seems as if you are saying people who work for minimum wage are inherently less effective and less productive than others. I have not found that to be the case. Many begin there, work hard to establish a record, and move up to better pay.
Posted by tiny on July 24, 2008 at 8:17 p.m. (Suggest removal)
Once again your ineptness is plain.
70 cents per hour does not cut into your cost. It cuts into your profits.
You seem to pride yourself in being conservative. I would advise you to become educated and knowledgeable before you inter into conversation
I believe jojojo points that out in the city budget posts as well.
Posted by steppin_in on July 24, 2008 at 8:29 p.m. (Suggest removal)
It's nice to sit in the seat of the complainers. Wonder if any of you have ever had to feed your children, or pay medical bills, etc on this god-awful wage?
Everyone doesn't have the luxury to complain about how much they're having to pay someone who is generally the backbone of their success.
btw, I work for an IT company out of Dallas. I no longer make minimum wage, but I have. It's pretty hard to pay rent/mortgage, actually have food AND utilities. God forbid you have a medical emergency or actually need to pay daycare so you can support your boss's lifestyle.
There are two sides to this issue. I'm really glad I'm not currently (things could change) on the receiving end of this penance.
Shame on those of you who seem to think these people don't need or deserve even the smallest of raises. Maybe you should trade places for a few months to remember (or learn) what it's like to live on minimum wage.
Posted by leroy on July 24, 2008 at 8:41 p.m. (Suggest removal)
Can someone tell me why we should just raise the minimum wage to $100 an hour, so we could all be rich.
If businesses make too much profit large businesses will move in to make that profit too. More competition prices/profits down. Raising minimum wage hurts the people it claims to help, saying otherwise is uninformed.
BTW, I'm not rich, in fact I'm in the lowest tax bracket with using the standard deduction. I understand being poor. Most people on minimum wage very long, they get skills and move upward.
I find articles by Walter Williams and Thomas Sowell to be very enlighting. Just do a search for their names with minimum wage afterwards.
Posted by tiny on July 24, 2008 at 9:20 p.m. (Suggest removal)
Leroy
Be careful listening to Thomas Sowell
Basically, minimum wage is a non event. It mostly affects part-time and farm labor and only has an impact in times of relatively high unemployment.
That is why our politicians only address the problem every 20 years are so.
If Conserve is paying people minimum wage in Abilene with an unemployment rate of 3.5% …his/her product, service and employees are of marginal importance to the economy.
Anyone in Abilene today who wants a job can have two.
Pay employees what they are worth, charge what your service/product is worth, and out think, out work and out plan your competition and you will be successful.
I could understand conserve’s complaints if the law wasn’t universal. But the competition has to deal with the same issue. If you are failing, it is not because of minimum wage.
I would suggest a look in the mirror for the answer
ps,
we could raise mw to $100/per hour...but the price of everthing would adjust to reflect the increase and we would all be in the same place. as we are now.
Posted by leroy on July 24, 2008 at 9:48 p.m. (Suggest removal)
Ok, you and I decided to open a snow cone stand. After a few months of decent business we decide to hire a new employee, but we can only pay the employee $7 an hour because we aren't making money hand over fist; we are just doing ok. If the minimum wage was set at $9, we can't hire the employee profitably. That's one job that doesn't exist, even if our competitors had to deal with the same issue...none of those jobs exist. Explain to me how that doesn't hurt employment, especially low skilled employment?
Posted by tiny on July 24, 2008 at 9:56 p.m. (Suggest removal)
. Leroy.
Business is good enough to expand but not to pay a new employee the same pay you are paying your existing employee and, I would presume, the same wage your competition is paying their employees to do the exact job.????
There are many reasons businesses fail. Wages are generally not one of them.
My point is wages are set by competition, not the feds.
Posted by teh_freaky on July 25, 2008 at 12:16 a.m. (Suggest removal)
If minimum wage increases, everyone's pay should increase by that amount.
I'd like a 70 cent raise for no reason too, please.
Posted by conserveABI on July 26, 2008 at 8:07 a.m. (Suggest removal)
123, after this, I am going to stop responding to you because of your acerbic, personal attacks.
I won't take economics lessons from someone who believes that the government's setting minimum wage is a "non-event." There are many factors, such as "the price the market will bear" that I feel you are ignoring. Moreover, published research shows that artificially raising minimum wage leads to inflation, and I'll take the words of economic experts over you.
Have a nice day.
Posted by conserveABI on July 26, 2008 at 8:22 a.m. (Suggest removal)
PS. Yes, I meant to say ".70 per hour adds to my costs" rather than "cuts into." Just as I'm sure you mean to spell "enter" correctly.
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