COLUMBUS, Ohio -- Some employees will be ringing in the New Year with a raise.
NBC 4's Ana Jackson reported with the BOTTOMLINE Wednesday.
On Thursday, minimum wage will increase from $7 to $7.30.
Wages for servers and others who earn tips will see an increase from $3.50 to $3.65.
Restaurants, such as Phillip's Original Coney Island at 450 W. Broad St., will be hit hard by the increase.
Owner Nick Manus said food prices are inflated and with the rise of labor costs, he'll have to choose between laying off employees or raising prices on his menu.
"With the current economic situation, it's probably the worst time this could happen. It's not just $.30 or $.40. Over the last few years, it's a couple of dollars, and that's thousands and thousands of dollars added on to our expenses," Manus said.
But small business owner Chuck Kubat disagreed. He runs the Magnolia Thunderpussy. He said he retains good employees by paying them wages higher than the minimum.
"They spend all their money on living expenses, gasoline, rent, food. I don't know how they make it to tell you the truth. I think it's a shame. It should have been raised years ago," Kubat said.
Like many proponents of a higher minimum wage, Kubat said he believes low-wage earners spend more and help fuel the economy.
But critics warned the increase could kill many small businesses and leave employees jobless.
They argue that it's better for people to have jobs at $7 an hour rather than no job at all.
MORE INFORMATION ON WAGE INCREASE
On January 1, 2009, the increased minimum wage will apply to employers who gross more than $267,000 per year. In 2008, Ohio’s minimum wage had applied to employers who gross over $255,000 per year.
The constitutional amendment passed by voters in November 2006 states that Ohio’s minimum wage shall increase on January 1 of each year by the rate of inflation.
For employees of smaller companies (grossing $255,000 and less per year in 2008 and $267,000 or less after January 1, 2009) and for 14- and 15-year-olds, the state minimum wage is currently $6.55 per hour and will increase to $7.25 per hour July 24, 2009.
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