Some Attack Timing of Minimum Wage Hike

The federal minimum wage will rise to $7.25 from $6.55 an hour Friday, an increase aimed at giving workers at carwashes, restaurants, child-care centers and retail shops more buying power but one that has sparked criticism from some small-business owners, who say it could threaten their ability to survive in a weak economy.

The law applies in 30 states, including Maryland and Virginia. The increase also affects the District, because it sets its minimum wage $1 higher than the federal rate. The remaining states already pay minimum wages above the federal rate.

Washington area economists say only a small number of businesses here are paying the minimum wage, largely because of the competition for good workers -- even on the lower end of the pay scale -- in a costly region.

"We try to pay a little higher [than minimum wage], trying to attract the best people that we can," said Richard Meddings, district manager of Flagship Carwash Center in the District and Maryland. He added that only "a handful" of his employees, mainly new hires, are paid $7 an hour.

"I don't think it's going to alter the business for now," he said of the cost of increasing wages. "I think it's probably going to help those who are only making minimum wage to come up to a little bit better standards."

Congress devised three annual increases in the minimum wage well before the full brunt of the recession was known. The rate rose to $5.85 from $5.15 an hour in 2007, then climbed to $6.55 last year. The increase to $7.25 is the final step under the legislation. Even with the raise, workers are still behind when inflation is considered: The purchasing power of someone being paid minimum wage is 18 percent below what it was in 1968, economists say. link.....