Federal minimum wage increase Friday. (July 23, 2009)
Richmond -
A pay raise for many of the country's lowest paid workers starting today.
The federal minimum wage increase takes effect Friday. The increase to $7.25 means 70 cents more an hour for workers in 30 states that have lower minimums or no minimum wage.
While workers are happy, many small business owners worry about the added cost. CBS 6's Tracy Sears talked to the manager of a small business in Richmond's East End. The manager of Lucille's restaurant says they will feel the pinch of paying their employees 70 cents more, but happy workers means their customers will have good service.
Attorney Ty Jones with the Virginia Poverty Law Center says the increase will help rather than hurt the economy. She says workers will put that money back in to the economy.
Fiscal conservatives and some economists say the increase will force small businesses to lay off workers. And, workers could look forward to another pay increase. One of President Barack Obama's campaign promises included raising the minimum wage to $9.50 an hour by 2011.
The federal minimum wage increase takes effect Friday. The increase to $7.25 means 70 cents more an hour for workers in 30 states that have lower minimums or no minimum wage.
While workers are happy, many small business owners worry about the added cost. CBS 6's Tracy Sears talked to the manager of a small business in Richmond's East End. The manager of Lucille's restaurant says they will feel the pinch of paying their employees 70 cents more, but happy workers means their customers will have good service.
Attorney Ty Jones with the Virginia Poverty Law Center says the increase will help rather than hurt the economy. She says workers will put that money back in to the economy.
Fiscal conservatives and some economists say the increase will force small businesses to lay off workers. And, workers could look forward to another pay increase. One of President Barack Obama's campaign promises included raising the minimum wage to $9.50 an hour by 2011.
