The hourly Federal minimum wage will increase from $5.85 to $6.55 Thursday, but few workers nationwide will see the extra 70 cents an hour in their checks.
That's because the proportion of hourly workers paid the federal minimum has fallen from 15.1 percent in 1981 to 2.3 percent in 2007, according to the Bureau of Labor Statistics.
State minimum wages have largely outpaced the federal minimum, which was flat for almost a decade, starting in 1997. When state wages are different from the federal level, the higher wage prevails.
In Mississippi, there is no state minimum wage law. Instead, the minimum wage in the state is the same as the federal minimum wage. Even so, the increase may not make much difference to many workers or employers. Many jobs, like food service, that have traditionally paid minimum wage, have outpaced federal minimum wage laws even in Mississippi.
Gus Lisi, who owns numerous Subway stores in the Meridian area, said his stores won't be affected by the change because all his employees are already paid at least $7 an hour.
"We want quality employees," Lisi said, "and we're willing to pay for that."
At area McDonald's stores some very new employees are paid minimum wage, but not many, according to Amy Brantley, who works in the stores' central office. Most workers, she said, make a minimum of $6.25 an hour, 30 cents below the $6.55 minimum to be imposed starting Thursday.
"It's only 30 cents," she said, "I don't think it'll be that big a change."
John Baas, of the Mississippi Manufacturers Association, said that manufacturing jobs in the state generally pay above minimum wage as well.
"Our members are having difficulty finding employees," he said. "It's hard for them to attract workers at minimum wage."
Louisiana, Alabama, Tennessee, and South Carolina also do not have state minimum wage laws. In 10 states, the state minimum wage is equal to the federal minimum wage. In three states, Georgia, Wyoming, and Kansas, state minimum wage rates are actually below that of the federal minimum wage. Every other state has a minimum wage exceeding the current federal minimum wage of $5.85, according to the U.S. Department of Labor.
Only 1.73 million hourly workers in the United States made federal minimum wage or less in 2007, according to the Bureau of Labor Statistics.
The vast majority of those workers — 1.5 million — made less than federal minimum. That's possible because in most states, companies can pay workers as little as $2.13 an hour if their wage — plus tips — equals the minimum.
So some waiters, bartenders, parking lot attendants and coat checkers must make more in tips than they do in base wages to meet the minimum. If their tips plus wages don't meet the minimum wage, their employers must pay them the difference.
Next year's minimum wage hike to $7.25 an hour, planned for July 24, 2009, has the potential to affect far more workers than the hike this summer, as the federal minimum wage begins to outpace the states' minimum.
By September 2009, the number of states with minimum wages above the federal level will be down to 12, with several states tied with the federal rate of $7.25, according to the Economic Policy Institute.
Local News
Minimum wage to increase Thursday
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Morning update for Wednesday, May 30, 2012
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In memory of those who died
A 21-gun salute is a common part of any Memorial Day program.
But the release of 21 snow white doves representing the peace we enjoy today because of those who have fallen in battle was a rare treat of the Second Annual Memorial Day Program held Monday afternoon at Magnolia Cemetery in Meridian. -
Choctaw Expressions to be showcased
The Mississippi Craft Center will present Choctaw Expressions as the featured cultural and historical exhibit for the month of June.
The presentation will showcase the rich and unique heritage of the Mississippi Choctaw Indians with traditional cultural arts and artifacts. The exhibition is set to open to the public on Friday, June 1 at 10 a.m. The Mississippi Craft Center, located in Ridgeland, is open daily from 9 a.m. to 5 p.m. with free admission and will highlight this unique event through June 30. -
Earth’s Bounty Festival Saturday
Residents in the Meridian area will have the opportunity to purchase locally grown or made products throughout the summer and fall through the Earth’s Bounty festival.
The expanded version of the current farmer's market will take place on the first Saturday of every month from June-November at Singing Brakeman Park in Meridian near Union Station. -
WWI soldier’s family receives Purple Heart
About three weeks before the end of WW I, two young officers with the 320 Machine Gun Battalion crept through the battered moonscape of France on a mission to find new positions for their weapons.
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Man dies of gunshot wound
Investigators with the Lauderdale County Sheriff's Department are investigating a shooting incident that occurred Saturday morning in which one person died.
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Leading Edges uses technology to enhance advertising
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Meridian soldier to receive posthumous Purple Heart
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