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Minimum wage hike hasnt hurt local industry
Lowest pay up to $7.25 an hour, but most already make more
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McDonald’s employee Linda A. Baca cleans a dining room table at the restaurant at McEver Road and Ga. 53.

Additional expenses are never welcome when times are tough, but local businesses say the recent hike in the minimum wage hasn’t caused any hardship.

July 24, the federal minimum wage rose from $6.55 to $7.25 per hour. While the additional 70 cents was welcomed by employees, business owners said many workers already were making that much or more.

"Probably 65 to 70 percent (of employees) were already making above the minimum wage," said Bob Swaszowski, who owns 11 McDonald’s franchises in the area.

Swaszowski said he has been in the McDonald’s business for 36 years and has seen the minimum wage increase many times over his career.

"We were prepared for it," he said. "I’ve been around long enough to know how to get prepared."

Swaszowski said long-term planning is important to get a business ready for a minimum-wage increase.

Though wage increases are now smooth transitions, Swaszowski said that wasn’t the case the first time he dealt with it.

"We about had heart attacks because we weren’t prepared," he said.

Swaszowski said this year he "slowly made adjustments in our pricing" to offset the cost of the minimum-wage increase.

In his many years in the restaurant industry, Swaszowski has seen the minimum wage go from around $2 an hour to the current $7.25.

"I don’t care if everybody makes $10 an hour," he said. "People will ultimately raise prices ... To me it’s almost a nonissue."

Historically, those who earn minimum wage are young, part-time employees, said Mike Ryan, an associate professor of business administration who teaches economics at Gainesville State College.

"A 30-, a 40-year-old is not as likely to be around minimum wage," Ryan said. "A 20-year-old, that individual is likely to be more around the minimum wage."

Ryan said the current wage hike is the third in a recent effort to catch up with inflation.

"There’s a lot of debate among economists over whether we should have a minimum wage or not," Ryan said. "But if you’re going to have a minimum wage, most economists agree you have to index it somewhat to the price level. It hadn’t been changed in quite some time, so there was a three-tiered change that occurred over the last year or two."

In 2007, the minimum wage moved from $5.15 to $5.85. In 2008, it was bumped up to $6.55.

"Before that it had been flat for sometime, and that constant minimum wage means it’s actually a lower wage when adjusted for inflation," Ryan said. "These adjustments were meant to bring it back in line."

Ryan said some believe businesses will be more affected by the wage increase because of the poor economy. But others feel it is even more crucial in tough times.

"So many years back when the minimum wage was instituted it was in the midst of economic problems to begin with to make sure people had the basics to survive; so if you’re really a student of history, you would argue that these types of situations are when a minimum wage is most needed," Ryan said.

Kit Dunlap, president of the greater Hall Chamber of Commerce, said she hasn’t heard of any problems among local businesses.

"I really do think most folks in our area are paying above minimum wage," Dunlap said.

Grier Todd, CEO of Lake Lanier Islands, said of his 200 seasonal employees, only 75 are paid minimum wage.

He said as seasonal employees come and go, the increase has not been a problem. Currently, many student employees are leaving work to return to school.

"We hire about the same number each year," Todd said. "Due to the seasonality of the job, the attrition’s going to be there. It works itself out."

Local governments also felt minimal impact. Hall County pays just one employee at the minimum wage.

"We did have one person we had to adjust," Hall County Administrator Charley Nix said. "I think everyone we hire is well above the minimum wage. It’s pretty competitive to get the right person in the right job."

Gainesville had an increase of just less than $4,000 for its minimum-wage workers, who are employed mostly by the city’s Parks and Recreation Department and Chattahoochee Golf Course. Gainesville has a total budget of $25.78 million.

The city of Jefferson had to budget for its 22 part-time summer employees in the Parks and Recreation Department making minimum wage. Officials said the added expense is another obstacle for the city, which is already struggling to balance its final budget by August.