On Tuesday, the minimum wage rose from $5.15 to $5.85 per hour, as required by state law. To comply with federal requirements, the pay rate will increase to $6.55 per hour in July 2008 and $7.25 in July 2009.
Brenda Parks, partner at Gibby's Deli, said the minimum wage increase will not have an impact on her business. Most of the 19 deli employees make between $6.50 and $9 per hour, she said.
"Honest and truly, it won't affect us," Parks said.
Danny Bryant, owner of Pic Pac grocery, said it's hard to attract employees if the compensation is set at minimum wage. Most of his 23 employees start at or above $6.50 per hour.
"People just aren't interested in working for less than that," Bryant said.
Even when the minimum rises to $7.25 per hour in 2009, Bryant said, it won't have an impact on his business. With inflation and the rising cost of living, he expects most workers would demand $7 per hour even without a statutory increase.
"I think $7 will be worth what $6 is now," Bryant said.
Marisa Bluestone, media relations manager for Wal-Mart, said the average hourly wage for associates in Kentucky is $10.37.
"I don't think this is a Wal-Mart issue," she said.
Kenny Tran, manager and owner of Baskin-Robbins ice cream store, said he thinks increasing the minimum wage is a good idea. Most of his seven employees are high school students who earn at or above $6.25 per hour.
"A lot of people are struggling right now with their daily needs, so I think it needs to go up," Tran said.
Although the minimum wage will continue increasing to $7.25 in 2009,
Tran said he doesn't plan on reducing staff or cutting hours.
"This is a small business and we run it pretty well," he said.
Carmen Inman, executive director of the Frankfort Area Chamber of Commerce, said the minimum wage increase will probably have a greater impact in 2009. Most employers are paying at or above the new minimum wage already, she said.
"We are going to watch and see how things are going," Inman said.
The wage increases could have a negative impact on students seeking internships or co-op jobs, she said. High schools like Western Hills, Frankfort Independent and Franklin County have programs designed to help students begin their careers. If employers are required to pay students more, Inman said it could make students less competitive against candidates with more skills or training.
"I don't want it to affect their chances to develop skills and enter the workforce," she said.
Rita Rector, principal at Frankfort High School, said students benefit from the school's internship program, which helps place them in a variety of jobs relating to food service, technology or business. When the minimum wage goes up in 2009, Rector said she is concerned employers might hire fewer interns.
"I want students to have the opportunity to make money and gain experience but their priority is to earn a high school diploma," she said.
However, she said the wage increases are probably of greater concern to workers trying to support a family.
"Students are supported by their families," Rector said.
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