Wage laws cause many problems for employers
Wes Mayle
Issue date: 4/14/09 Section: Special Report
"When minimum wage got bumped up, a lot more people said, 'You know what? I'll go to college part-time and work this minimum wage job now, because the wage went from $5 to $7,'" Thompson said. "So, what did we do?
"We're actually delaying, or a population is delaying, going to college or extending the time in college because we've raised the minimum wage."
When the minimum wage peaks at $7.50 it will be a near 41 percent jump for the jobs that once paid $5.15. According to Thompson, that directly affects business owners, who will either have to raise the price of their products or cut their labor force significantly or both.
"When you raise the minimum wage," he said, "the business owner either has to make a decision from a cost standpoint to let go of his or her workers or you got to cover that cost somehow."
For business owners like Marcie Springer, who employ a majority of laborers either at or under minimum wage , the federal increase, along with the economy in a recession, forces tough decisions.
"Being a single momma, I got to look after my children," said Springer, owner of Buck's Pizza in North Augusta, S.C. "I understand minimum wage needing to go up, and I don't know how people can make it on minimum wage, but you know, a lot of people don't earn what they're getting at the old minimum wage.
"They want to make more money, but they don't want to earn it."
Springer said although she doesn't want to cut labor, she's had to because of a higher minimum wage.
"It's business," she said. "I mean, in the economy, with the way it is right now…, it's either me or them."
"We're actually delaying, or a population is delaying, going to college or extending the time in college because we've raised the minimum wage."
When the minimum wage peaks at $7.50 it will be a near 41 percent jump for the jobs that once paid $5.15. According to Thompson, that directly affects business owners, who will either have to raise the price of their products or cut their labor force significantly or both.
"When you raise the minimum wage," he said, "the business owner either has to make a decision from a cost standpoint to let go of his or her workers or you got to cover that cost somehow."
For business owners like Marcie Springer, who employ a majority of laborers either at or under minimum wage , the federal increase, along with the economy in a recession, forces tough decisions.
"Being a single momma, I got to look after my children," said Springer, owner of Buck's Pizza in North Augusta, S.C. "I understand minimum wage needing to go up, and I don't know how people can make it on minimum wage, but you know, a lot of people don't earn what they're getting at the old minimum wage.
"They want to make more money, but they don't want to earn it."
Springer said although she doesn't want to cut labor, she's had to because of a higher minimum wage.
"It's business," she said. "I mean, in the economy, with the way it is right now…, it's either me or them."
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