Minimum wage increase could mean higher prices locally (Audio included)
1/7/2013 11:03:55 PM
By Emily Evans
Ohio’s minimum wage went up 15 cents to $7.85 starting January 1.
There is also a new minimum for tipped employees--$3.93, which is an increase of eight cents an hour.
The minimum wage rate is adjusted each year in Ohio because of an amendment to the state constitution that was approved by voters in 2006. Increases are tied to the Consumer Price Index, which measures the changes in the prices of consumer goods and services purchased by households.
The minimum wage jumped 30 cents at the beginning of 2012.
According to the Economic Policy Institute, this year’s increase will benefit more than 200,000 low-wage workers in Ohio and will mean an extra $340 per year.
But Jim Snyder, the owner of Donatos Pizza in Bellefontaine, disagrees and says the increase doesn’t benefit employees like many may think.
Listen to Jim Snyder explain how the wage increase affects his business
One way Snyder may have to make up for the wage increase is through raising prices.
“I don’t like to have to adjust my pricing; I would prefer to keep in the same. It’s just something that you’re forced into doing,” Snyder said.
Snyder says not only could the wage increase raise prices, it may also force him to reduce the size of his staff and the number of hours his employees work.
“Most definitely a consideration is a downsize or reducing hours if you can’t make up your difference through any price increase that has been taken then you have to look at adjusting your hours or reducing overtime, etc,” Snyder said.
Only ten states, including Ohio, increased their minimum wage on the first of the year.