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Updated: 11:51 PM Jun 29, 2007
Minimum Wage to Increase
Mixed opinions of the impact In a few weeks, thousands of Nebraska workers might have more green in their pockets. Congress recently passed a bill to increase the minimum wage by 70 cents, from $5.15 to $5.85 an hour.
Posted: 8:08 PM Jun 29, 2007 |
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In a few weeks, thousands of Nebraska workers might have more green in their pockets. Congress recently passed a bill to increase the minimum wage by 70 cents, from $5.15 to $5.85 an hour.
It's the first increase of its kind in 10 years. Supporters say it's long overdue help for the working poor but others raise questions.
College student Ben Pham's job at Papio Fun Park pays some bills.
He says, "I do have student loans to pay off after next year."
Pham won't be immediately affected by the new minimum wage increase because he makes more than the minimum. We found that most people in the metro are in the same situation.
But Pham still cares about the issue and he says the law is pointing the country in the right direction.
"I think it's a good idea," he said. "I know a lot who can't afford to pay the rent."
On July 24th, the minimum wage rises to $5.85, a year later it increases to $6.55 and in July 2009 it rises to $7.25.
Papio Fun Park owner Margaret White says, "The Social Security, the workmen's comp, those funds that the employer pays, that's where it's going to affect us because the higher the wage the more percentage it takes to have to do that."
White says that even though her employees make more than the minimum wage the law will have an effect as it drives up wages across the board.
She says, "I'm going to have to boost everyone's salary up commensurate with that increment."
Ultimately she says all of us will end up paying as businesses pass these costs on to consumers and she adds, "If you think gas is going to affect things, this is going to be a major effect."
While it's true that few earn the minimum wage, Bill Hetzler with Nebraska Workforce Development says thousands will still be affected.
He also says the state has investigated businesses that actually try to get away with paying less than the current minimum wage. Those businesses are often in rural areas where there aren't as many employment opportunities and workers take whatever jobs they can find.









