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Minnimum wage hike may add pressure to local restaurants

This friday, August 1st Minnesota's minimum wage go up to 8 dollars an hour. That will mean a pay hike of about 75 cents for those workers currently at the federal minimum wage of 7.25/hour.

How this will affect minnesota businesses will largely depend on what kind of business it is, because many already pay their employees over 8 dollars per hour.

Crookston Hardware Hank owner Craig Buckalew says this change will affect his bottom line because some of the starting positions at his store are now at minimum wage. He says while any change in an hourly wage will affects profit, overall this wage hike shouldn't mean raising prices or significant cutbacks.

Local businesses that will be affected the most tend to be restaurants in border towns like East Grand Forks that have to compete with those in North Dakota that have a tip credit, meaning tipped servers in Grand forks are paid a much lower minimum wage.