By David Madden
PHILADELPHIA (CBS)–Voters in New Jersey last month approved a constitutional amendment that increases the state’s minimum wage by a dollar.
That hike, to $8.25 an hour, takes effect with the New Year and the state’s business lobby warns against great expectations.
The New Jersey Business and Industry Association expects things to be looking up in 2014 but one cloud on the economic horizon, at least for them, is that 14% pay hike for thousands of workers.
Many of them are employed in small businesses that association President Philip Kirschner believes won’t be able to absorb the added cost.
So what will those workers see going forward?
Their hours are probably going to go down. Some people may go from full time to part time. And they will not be getting the extra money that, perhaps, they were counting on.
The new law also ties future increases in the minimum wage to inflation, which Kirschner says could put added pressure on the business owner when times are tight.
And the total cost of Obamacare is still very much an open question.