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May 06, 2008
Will Minimum Wage Hike Hurt Businesses, Economy?
Most HR professionals don't think that this summer's increase to the federal minimum wage will adversely affect their company or the economy as a whole--but others aren't so sure, according to a recent Compensation.BLR.com poll.

When asked "What will be the impact of this summer's increase in the federal minimum wage?," 56 percent responded that it would have "Minimal impact on our company and economy' while 32 percent believed it would have "Minimal impact on our company, but could hurt economy." Only 11 percent responded that they thought the increase would be "Bad for our company and economy as a whole."

The federal minimum wage will increase from the current rate of $ $5.85 per hour to $6.55 per hour on July 24, 2008. It is set to increase again to $7.25 per hour on July 24, 2009. The Fair Labor Standards Act does not supersede any state or local laws that are more favorable to employees. Therefore, if a state has a minimum wage that is higher than the federal minimum, employers subject to the state minimum wage law are obligated to pay the higher rate to employees working in that state.

The Compensation.BLR.com poll included 194 respondents.

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