Minimum wage increases in Delaware

$8.25 an hour.

As of Monday, it’s the new rate minimum wage workers will be earning in the first state.

It’s good news for employees, but a new challenge for employers who have to adjust their finances.

“Small business is under the gun I think, rules, regulations, cost factors.” And “Most small businesses work on such a small amount of year end profit.” Said Charlie Cathell of the U.S. 13 Dragway in Delmar.

On June 1st 2014, the rate initially saw a 50-cent increase from *$7.25 to $7.75.

Now, a year later another 50-cent bump to $8.25, putting somewhat of a strain on local small businesses like the U.S. 13 Dragway, a seasonal business, that employs the vast majority of its workers over the summer.

“It’s very difficult in the middle of a season to make major changes in the middle of the season unless you really see a business going sour.” Replied Cathell, when asked about how the increase would affect operations of his business.

While businesses have to adjust, financial advisor Roger Martinson says the employee should consider adjusting too, as far as spending and saving habits.

He said, “I think for those that are working I think the wage increase could be a good thing.” and “Hopefully what this will allow them to do is put more money in savings obviously hopefully with retirement.”

Delawareans now making $8.25 an hour, working a 40-hour week, will make $330/week and about $17,000/year.

That’s above the U.S. poverty line for one person or two, but still below it for a household of three or more.

But even saving a small amount can add up in the long run, and Martinson encourages seeking help.

“Come and talk with a financial advisor to help them plan out their long term goals, find out where they are now and where they want to go.”

Earlier this year, legislation introduced by Wilmington Democrat Senator Robert Marshall proposed additional increases over the next four years that would bring the minimum wage to $10.25.

On January 1st, Maryland saw its minimum wage increase by 75-cents, bringing it to an even $8/hour.

It’s set to increase again by 25-cents a month from now on July first.