Increase in state's minimum wage would have little effect here

Most businesses already paying more

By Lindsay Fiori
Journal Times

Wednesday, August 6, 2008 8:43 PM CDT

RACINE — A proposed 75-cent increase in Wisconsin’s minimum wage would likely have little effect on local businesses.

The proposal would raise the state’s minimum wage from the current rate of $6.50 per hour to $7.25. The change would take effect July 24, in conjunction with a federal minimum wage increase from $6.55 to $7.25.

“Most employers in Racine are over the minimum wage, so (an increase) usually doesn’t impact too many,” said Roger Caron, president of Racine Area Manufacturers and Commerce.

A few businesses may have difficulty paying higher hourly wages, and will have to pass that cost on to customers by raising prices. Some businesses may also raise their wages to remain competitive, Caron said.

“Most of the ones that may be at that point are ones with a higher amount of unskilled manual labor. Retail service may be affected as well,” he said.

The state minimum wage would be the same as the federal minimum wage with one key difference — the state wage would apply to seasonal and migrant workers. There are about 2,800 of those workers in Wisconsin, said Howard Cosgrove, Department of Workforce Development communications specialist.

Randy Larsen, the owner of Lawn Specialists, a small landscaping company, employs some seasonal workers. He said a minimum wage increase would not change his business.

“I always pay more (than minimum wage). I think it’s too low of a wage for a person,” Larsen said. “What we need is for employers to be fair with their employees and pay them what they’re worth.”

The City of Racine Parks and Recreation Department also employs seasonal workers and students. The department pays seasonal workers $14.22 per hour and students $9.55 an hour, said Director Donnie Snow.

A minimum wage increase “wouldn’t affect us at all,” he said.

Having a state law would allow state officials to enforce the minimum wage.

State officials are “much closer to employers and tend to do a better job of enforcing wage and hour laws,” Cosgrove said. “We will follow up with at least a letter and sometimes an investigation.”

The proposed increase comes from the DWD, which held a public hearing in Madison on Wednesday. The department will draft an administrative rule, which would have the same force and effect of a law, and send it to the state Senate and Assembly committees that deal with labor law. The committees will have 30 days to hold hearings and modify the rule. If they choose not to, the proposal will be published and will take effect in July, Cosgrove said.

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