However, today we can celebrate that the federal minimum wage increases to $5.85 an hour, and, thanks to legislation co-authored by State Rep. Joe Micon and supported by nearly all of our local legislative contingent, so will Indiana's minimum wage.
In 2008, the minimum wage will increase again to $6.55; in 2009 it will increase to $7.25.
Many people in Indiana and around the country worked hard on this legislation, and many hardworking people will benefit.
Fewer than 37,000 Hoosiers earn the minimum wage right now, but this increase will help many thousands who earn just above the minimum $5.15 an hour.
The raise to $7.25 will directly impact 143,000 Hoosiers, according to the Economic Policy Institute.
The Indiana legislation was important because not all Hoosiers are covered by the federal minimum wage.
The federal wage applies to employees of companies with revenues of at least $500,000 a year and smaller firms engaged in interstate commerce.
The Indiana law will cover virtually all employers with at least two workers.
Increasing the minimum wage is a matter of fairness.
It also makes economic sense. After the last federal minimum wage increases in 1996 and 1997, the nation experienced lower unemployment, low inflation, robust growth and declining poverty rates.
With this step, we have no reason to expect otherwise.
Patti O'Callaghan
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