Minimum wage or maximum pain?
With the fight over a higher federal minimum wage raging in Congress, CNNMoney recently surveyed employers in various states to see how a minimum wage increase would affect their businesses.
As CNNMoney notes, when there's a minimum wage increase, some small-business owners will raise the pay for most other hourly workers to preserve their wage structures and retain quality employees.
Doing so resulted in an annual $15,000 labor cost increase for a daycare in New Jersey, a state that raised its minimum wage to $8.25 per hour. New Jersey was one of 13 states that raised their minimum wages $1 Jan. 1. California will push its minimum wage up $1 July 1.
As employers raise their wages for nearly all workers, there is likely to be collateral damage—many business owners are considering downsizing so the increase will not hurt their bottom lines as much.
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