From Deseret News archives:

Bottom wage rising

No big impact in Utah because of economy

Published: Sunday, July 22, 2007 12:05 a.m. MDT
 |  E-MAIL | PRINT | FONT + - 
When Congress authorized a minimum wage increase in May, it intended to help the poor and ease stretched checkbooks; however, it may not have that effect in Utah.

Minimum wage in the state will increase to $5.85 per hour effective Tuesday, up from $5.15 now. It will rise again by 70 cents in 2008 to $6.55 and 70 more cents in 2009 to $7.25.

But with Utah's economy booming and an unemployment rate at 2.6 percent, few employers in the area pay minimum wage. Mark Knold, chief economist for the Utah Department of Workforce Services, said that in 2005, only 7,000 people earned minimum wage in the state, or 0.5 percent of the employed population.

Knold said now is the best time in Utah to have the minimum wage increase because it will have "no economic effect." During the process of passing the bill, the Bush administration had hoped to provide a provision for small-business owners who might be negatively affected by the hike. Knold, however, said a higher minimum wage won't have negative effects for business owners in Utah.

"The reality of it is in this explosive economy we have, (business owners) are having to pay more than minimum wage, and they're still in business," he said. "I don't think it's a very stressful thing to businesses."

Story continues below
Mark Hale, executive officer and legal counsel for Hires Big H, said most businesses have to pay employees more than minimum wage due to the current scramble for workers. Marc Greeley, owner of Connie's Pizza in Salt Lake City, agrees.

The minimum wage, he said, "doesn't mess with me at all. I can't image anyone paying minimum wage."

The majority of businesses fall under the umbrella of the federal minimum wage law, but the Utah Labor Commission has to make a state rule reflecting the federal law, said Robyn Barkdull, spokeswoman for the commission. But because Congress passed the law so late, the commission didn't have time to review the law and create a new rule. The Utah rule will be in effect Sept. 8.

Barkdull said that although the actual Utah rule won't go into effect until September, it "won't directly effect anyone."

"Really it's a formality to make our statute the same," she said.

States can choose to raise their own minimum wages, but they must comply with the federal law if their minimum wage is lower than the federal minimum. Utah chose to stick with the federal minimum wage instead of choosing to look at the issue on its own, Barkdull said.


E-mail: csmith@desnews.com

Comments

You can be the first to comment on this story.

Image
Deseret Morning News graphic

previousnext

Latest comments

Letters: Sales tax unfair

It is easy to tell the difference between a "fair tax" and an unfair tax. A...

Just as the liberals will never stop, I will never stop affirming my...

We have a point guard and a very good back up power forward (Millsap). Our...

Laws regarding marriage.... | 12:39 p.m. Nov. 12, 2009 "...are the same for...

Letters: Show true support

The difference is huge because a vote authorizing the President to go to war...

Letters: Trash or truth?

Demo Dave | 11:28 a.m. If you listened to the shows you complain about you...

These are not MC fans, they have to be TV trying to get everyone relied up....

Any elected official who supports said measures will not get my vote. This...

I'm still not clear on if we are discussing another "urban myth" or if there...

Tavernari has matured

I'm thinking Tavi is open right now....and he should shoot it!

Advertisements
Advertisement