Posted: Jan 3, 2011 5:48 PM by Stephanie Collins
Updated: Jan 4, 2011 9:37 AM
Minimum wage workers in our state are welcoming 2011 with open arms.
Minimum wage is up from $7.24 to $7.36 according to the Colorado Department of Labor. That's good for employees but it makes things a little harder for businesses. To compensate, the cost is passed on to consumers.
For example, you'll likely find higher prices on restaurant menus this year, "As an industry you certainly will find that you do pay a little bit more when you go out and unfortunately it's what you have to do to pay people better," says Tom O'Connell, General Manager of The Egg & I Restaurant at Barnes Rd. & Powers Blvd. in Colorado Springs.
In 2006 a measure was passed by voters that adjusts minimum wage each year based on Colorado's inflation rate. Also for 2011, economists say social security taxes are being cut 2%, which means workers will have less taken out of their paycheck and will take home more money.