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Talks Of Minimum Wage Increase


Several states have already put minimum wage increases in place for 2014, could Alabama be next?

President Obama says raising Americans wages isn't just a good deed, its good business and good for our economy.

Local officials say before such a dramatic hike, it's important to look at how it would really effect the bottom line.

It's been the talk of many political platforms.

"Even here in the last few days, at the us conference of mayors on Monday, there has been a lot of discussion with some of the cities across the country wanting to increase the federal minimum wage, " says Delvick McKay, Personnel Director for the city of Dothan.

Currently, minimum wage is $7.25, but there are several states interested in raising that number.

So far, two numbers are being presented for the new minimum wage standard, $10.10 and $15.00.

"I think that would mean probably a lot of people wouldn't be hiring and some people that are currently employed would probably lose their job because the employers, owners of the companies, have to have a profit margin and if that employment cost cut into that profit margin then they are going to have less employees, " says Dothan City Project Manager,Steve Turkoski,

"It will put more money into the pockets of the consumers but also there will be some strain on the business owners and governmental entities to try and cover those payroll cost, " says McKay.

Ultimately passing the expenses off to consumer or, you, the citizens of the Wiregrass.

"Here in Alabama as opposed to out in the east or the west the cost of living is very affordable and so that would certainly be a factor, " says McKay.

"If it did, it would have dramatic negative effects on our community thru the loss of employment. If in fact we could afford, to pay that minimum wage, then there would be more money flowing thru the economy but like i said, that's a big if, " says Turkoski.

Currently the average cost of a home in Dothan is more than $125, 000, compared to the national average which is more than $185,000.

Officials say, that gap may get closer together if minimum wage is increased, in turn causing the cost of living to go up.

Washington DC along with states like Connecticut and West Virginia, have already put minimum wage increases in place during the 2014 session.


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