Published: July 02, 2009 09:07 am      

State wage increase takes effect

Staff/Wire Report

Jessica Newell said an increase in Kentucky’s minimum wage might provide her with extra money, but because the cost of almost everything is going up, the increase may not be that significant.

Newell is a single mother with two young children, and as of Tuesday, she was making $6.55 an hour working at Philly Connection in Corbin.

Starting Wednesday, her salary jumped to $7.25 per hour when a new Kentucky state law took effect.

Kentucky Labor Secretary J.R. Gray says the state rate increase takes effect earlier than a federal minumum wage increase of the same amount set for July 24.

The minimum wage for tipped employees, including waiters and waitresses, remains at $2.13 per hour.

“It might help put a little more money in your pocket, but everything else will be raising, too,” Newell said.

Newell said she makes $200 a week, and that she first pays her bills and then buys food for her children. She said it’s not a lot, but she makes it work.

“I’m the only one caring for my kids. The only one they have is me,” Newell said.

Newell held an assistant manager’s position at McDonald’s in Ohio before coming to Kentucky, and said she was making $7 an hour there.

She said she thinks Kentucky should have raised its minimum wage sooner to keep up with surrounding states. She also said that Kentucky should be raising their minimum wage higher to offset the rising cost of living.

“It would be good if they raised it higher (minimum wage), but everything (cost of living) will jump up higher,” Newell said.

But William Davis, chairman of the economics department at Western Kentucky University, said the wage hike could mean higher labor costs for employers, which could lead to fewer work hours and less job opportunities.

Ivy Brashear and the Associated Press contributed to this report.