Minimum wage raised

For Mary Wilson, the July 24 minimum wage increase from $6.55 to $7.25 an hour will be a blessing for her family of five.

“I’m excited because I can always use more money,” said Wilson, who works at Subway in Bonners Ferry. Working 35 hours a week, the 70-cent-an-hour raise equals $24.50 more a week before taxes.

Wilson is among nearly 40,000 people in Idaho who will see a pay increase. It is the last of three annual increases approved by Congress in 2007 and ratified by the Idaho Legislature to bring the minimum wage from $5.15 an hour to $7.25, according to the Idaho Department of Labor.

Prior to that, the wage had not been increased since 1997.

For Ron Erickson, owner of Chic ‘n’ Chop restaurant, the third minimum wage increase in three years will mean passing the buck onto customers.

“Prices will probably have to go up, which I hate to do,” said Erickson, who will give eight employees raises.

He anticipates, for example, raising the cost of his $6.50 breakfast by 10 to 15 cents.

“I hate to do that, but that’s what happens when it’s (minimum raise) raised,” he said. “It’s gonna hurt. People won’t be able to afford to eat out. A lot are on fixed incomes.”

Jessie Stewart, manager for Zips in Bonners Ferry, will give pay-raises to eight minimum wage employees.

“It will be challenging,” Stewart said. “I think we will work around it as best as we can by continuing to be the economically best at what we do.”

A South Hill fast-food restaurant, Zips does not plan to raise menu prices or lay off employees, she said.

“I think good business sense has kept us afloat,” Stewart said.

Zips earlier this month added breakfast, which means opening at 8 a.m.

At $7.25 an hour, a full-time worker will earn $15,080 annually, according to a published report. At the nationwide work week average of 33 hours, the worker would earn $12,441. The U.S. government sets the poverty level at $10,830 for one person or $22,050 for a family of four.