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As minimum wage goes up, will hours go down?

READ MORE: As minimum wage goes up, will hours go down?
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Friday's wage increase will be the last of three increases that started in 2007, when minimum wage was $5.15 an hour. Since then, minimum wage has increased by $2.10; a 40 percent increase for the lowest paid workers. Carlos Simpson is a minimum wage employee. “I feel like it's about time. I have bills. My phone bill is about to kill me and I can't pay it anymore. I need this raise,” he said. Seventy cents per hour may not seem like much, but for full-time minimum wage workers like Simpson, the increase will mean almost $30 more in their weekly paycheck. “That could be a haircut or some gas. That could be anything. I might go to the club twice in one week, you don't know,” Simpson said. Minimum wage going up is good news for those who have a job, but experts say the increase could ultimately make more people wind up at the unemployment office. “As the rates go up, the employees who get to keep their job are happy, but overall, either they get less hours, which impacts them, or they lose their job,” described Sara Raleigh of Wilmington SCORE. At small businesses like Coastal Cupcakes, the additional 70 cents per employee, per hour, adds up quick. A company with ten employees will pay almost $300 more per week. For the month, the payroll will increase by more than a thousand dollars. For Coastal Cupcakes, it means they can not hire the additional employees they need. “Right now, this is the max number of employees that we can afford to have at this time, at this rate,” said Coastal Cupcakes co-owner Kristen Beckmeyer. But Beckmeyer said she will take every step to avoid parting with an employee. “Before laying anybody off our first reaction would be to decrease hours. We as the owners would come in and work more hours,” she said. While minimum wage workers will see more money in their pay checks, the increase won't help restaurant workers. The minimum wage for servers and bartenders is $2.13, and it will stay that way.

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Minimum Wage Increase

No one argues that there should be a reasonable minimum wage, and that the wage should increase over time, allowing for inflation. But the problem is the amount of the increase, which is over 10% in the most recent case alone. This is more than many small business owners can tolerate, and is much higher than wage increases given to other workers in general. The minimum wage should be increased using the method used for determining Social Security increases. Otherwise, there will be losses of jobs or cuts in the hours worked after the increases go into effect.

Minimum Wage

I do not see how anyone lives on minimum wage - even at the increased rate! It is ridiculous with everything else going up the way that it has...gas, food, etc. I realize it may hurt small business owners but the larger, greedy owners should try living on that amount for a change! Wilmington is one of the worst areas I have seen lately to exploit workers....wages in that area are crazy compared to other parts of the state. Take that tourism money and pay your permanent residents (the ones who support the tourism industry) what they deserve!

maybe they did

Maybe those evil greedy business owners did live on minimum wage before they decided to open a business. You are so correct, those that take the risk of running a business should not be able to profit from it. The government should take all their money and give it to those on welfare. Oh wait, that already happens.

LOL

sorry suckers...do they NOT understand that they are going to end up paying MORE than their raise in the cost of goods that increase do to this minimum wage increase? Businesses don't pay employees to work....CUSTOMERS do and when the cost of employing them goes up...so does goods...so you pay 5 cents here, 50 cents there...LOL before you know it...that increase is negated PLUS some...smoke and mirrors...smoke and mirrors

stupid

With that kind of mentality, shouldn't everone work for 50 cents an hour?

No, the premise is

No, the premise is that the government shouldn't be interfering with how private businesses conduct their business.

good job

"I might go to the club twice in one week, you don't know,” Simpson said." This is why people will always live paycheck to paycheck. Saving that extra money would be the best thing to do but bar hopping will win out. Priorities?

going to the club, and high phone bill

laughing at the person that can't pay his phome, bill, just quit using it, only when necessary, and the person going to the club, both need to save for their Health Insurance

Health insurance???......

the govt is going to take care of my health insurance. I can now go to the club three times a week and get the latest phone. I wish the govt would give us an Iphone with safelinkwireless. This mentality is why some people have to work for a "minimum wage". The govt. has no right to set a wage. Some people should have to work for free because society already takes care of them. Making five dollars or seven dollars an hour, if that is all you are qualified for, then set some goals for yourself. Yes, everyone who is a consumer will get this passed on to them by the business's. Thanks big brother for solving our problems?? Politicians create problems and then campaign against their creation??????????????