Minimum wage increased to $5.85

The Fair Minimum Wage Act of 2007 took effect Tuesday, raising the federal minimum wage for the first time since 1997, tacking on 70 cents to the federal minimum rate. Now workers must be paid at least $5.85 per hour.\nIndiana was required to raise the state minimum wage from $5.15 to the new rate, but surrounding states had no problems meeting the new requirements because their minimum wages were already set above the new standard.\nIn Illinois, the minimum wage is currently $7.50 and will increase to $8.00 by 2010, according to a report from the U.S. Department of Labor.\nNew wage requirements raise concerns for the success of locally owned businesses that are now required to expand their annual budget in order to pay their workers more.\nJohn Wilson, owner of Pygmalion’s Art Supplies, 108 N. Grant St., planned the minimum wage increase into his budget for the rest of the year. He said he also planned for the 2008 minimum wage increase to $6.55 but has no plans for the 2009 increase that is planned to be set at $7.25.\nWilson said he already pays his employees above minimum wage because he requires experience and skills from his workers.\n“We want to make sure we hire the right people and that they are paid well,” Wilson said. “We feel that when we hire someone, we’re hiring someone more than just a minimum-wage person.”\nMany Bloomington residents and students take on low-paying jobs because of the competitive nature of finding a job. IU Student Andrew Sharp said he works a minimum-wage-paying job at the Herman B Wells Library because it was “really easy to get.”\n“I’d rather have a good job that I don’t get paid much (for) and still enjoy it than have a hard job that I hate because I want a lot of money,” he said.\nLike many students, Sharp said he receives financial assistance from his parents. He said he could not afford to pay for any of his own bills on his current wages. Sharp said he was surprised to learn about the minimum wage increase.\n“That’s so crazy,” he said. “The money that we’re making is going to be worth so much less. The dollar is already starting to lose its power against the pound and the yen, and they’re not even good currencies to begin with.”\nOne Bloomington resident said she is working hard for a raise in order to gain some financial freedom from her family. Katherine O’Brian is employed as a page at the Monroe County Library, which pays her above minimum wage, and she still struggles to get by.\n“It usually is hard, yes, because I can’t really pay for it all on my own, so it will be nice once I can get a raise here,” O’Brian said.\nRepresentatives from the governor’s office and the mayor’s office did not respond by press time to comment on the minimum wage changes in Indiana.