One step remains for Minnesota minimum wage increase - KSFY News - Sioux Falls, SD News, Weather, Sports

One step remains for Minnesota minimum wage increase

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Right now, Minnesota businesses are only required to pay workers $6.15 per hour. The new proposed minimum wage is $9.50.

"I think it's a good thing for people, but for a business, I think they are probably losing money," Berkner Pizza manager Nicole Kelzer said.

Berkner pizza is in Ortonville, Minn. A town that is right on the border with South Dakota's Big Stone City only a mile away.

"I would essentially think we might be getting a few South Dakota people. People that are new in the workforce will probably come to Minnesota looking for a job," Berkner Pizza owner and Ortonville mayor, Steve Berkner,said.

"I would definitely go where the money is if I were somebody else," Kelzer said.

The wage hike might seem like a great move for Minnesota, but Berkner is a little worried.

"Some adults that work here are at or near the projected minimum wage. If you start taking that minimum wage from $7.50 to $9.50, those other higher tier jobs that we have, we almost have to raise those at the same time," Berkner said.

The consumer may be affected as well.

"It more or less raises our food cost on a pizza. A large pizza would go up $1, and our buffet business would go up about $.80," Berkner said.

The increase will gradually rise, hitting $8 this August and $9.50 by 2016. It will not be required for businesses to pay anyone under the age of 18 the new wage. 

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