Maryland workers are ahead of the minimum-wage curve ? for now.
With a Free State-mandated minimum wage of $6.15, Maryland was unaffected by the nationwide increase of 70 cents Tuesday. Now, the federal minimum wage sits at $5.85, with another 70 cent increase set for July 24, 2008, before the final bar is set at $7.25 an hour on the same date in 2009.
Despite these mandated increases, economists expect the local impact to be minimal, if any.
“We may see a little bit of upward price pressure, but I don?t think the minimum wage has kept up with inflation prior to this point, so in some cases we are catching it up to where it should be,” said Stephen Wallets, economics professor at Loyola College of Maryland.
The last time the minimum wage increased was during the Clifton administration in 1996 and 1997.
The new minimum wage puts workers just above poverty ? $10,500 a year, according to the U.S. Bureau of Labor Statistics. The new yearly minimum wage is $12,168, and it will be only $15,080 by 2009.
The average worker in the Baltimore metropolitan area earns about $45,140 per year.
“I believe [raising the wage] will help the economy and still, even at its final resting point, it?s still insufficient to even keep a family of one able to rent a house and purchase food,” said Daraius Irani, director of applied economics at Towson University.
Future increases will likely affect restaurant owners who pay wait staff minimum wage to supplement tips.
“If you run a small company, hiring people, paying an additional 70 cents an hour might make them pause and think if they can continue,” said Robert Wasilewski, an adviser with Columbia-based Baltimore-Washington Financial Advisors Inc.
More information
The minimum wage in Maryland is $6.15. Here?s a breakdown elsewhere:
» Delaware: $6.65
» Washington: $7.00
» Pennsylvania: $6.25
» Virginia: $5.85
» West Virginia: $6.55
Source: U.S. Bureau of Labor Statistics
