Northern Star Online: Annual minimum wage increase goes into effect, but has little impact on local businesses, NIU

The new minimum wage hike enacted by Gov. Rod Blagojevich has little effect on local employment.

“We do not anticipate a significant change in jobs available for student employees,” said Associate Vice President of Administration and Human Resources Steve Cunningham. “Departments will make necessary resource allocations to support the new minimum wage level.”

On July 1, the minimum wage was increased 25 cents an hour, from $7.50 to $7.75. Legislation signed by Blagojevich in 2006 mandated that every July 1, until 2010, the minimum wage would be increased by 25 cents each year. At the end of July 2010, the minimum wage will reach $8.25 an hour.

“The increase will help 650,000 workers cope with the rising cost of living and pay for basic necessities like groceries, gas, rent, child care and medicine,” Blagojevich stated in a press release.

Businesses must take into account the implementation of the minimum wage hike for the existing budgets. However, Cunningham doesn’t think there will be a significant change in the availability of jobs for students.

“NIU maintains a relatively stable employment level for student workers,” he said. “I do not anticipate the minimum wage increase having a significant impact on available student worker positions.”

The minimum wage hike will affect approximately 1150 currently employed hourly student employees, according to Cunningham.

Elsewhere, the new minimum wage hike seems to be showing no significant problems. According to George Bahromis, a manager at Junction Eating Place, 816 W. Lincoln Highway, there have been no significant changes.

“We haven’t laid anyone off, and I don’t foresee it happening,” said Bahromis.

Several other local businesses and restaurants in DeKalb, Sycamore and Malta declined to comment on whether or not the minimum wage hike was affecting employment.

Blagojevich has raised the minimum wage by 60 percent in seven years, which “contributes to more jobs and a stronger economy.”

Nearly 150,000 workers that benefit from the minimum wage increase are parents, and 60 percent of those are women.

“Thousands of workers struggle everyday to provide for their families,” Blagojevich said. “…The increased minimum wage will make it easier for working families to afford their basic necessities.