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Higher minimum wage in New Mexico in effect today

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— About 160,000 of New Mexico's lowest-paid workers will get a boost this year as a new state minimum wage of $6.50 an hour goes into effect today.

The wage increases from $5.15 an hour - the federal level - to $6.50 throughout 2008 and to $7.50 starting in January 2009.

The state minimum will overlap with federal increases that started last summer, but the federal minimum wage will peak at $7.25 per hour in the summer of 2009, which will be below the state's minimum.

The new wage does not affect higher minimum wages already set in Santa Fe and Albuquerque, the Governor's Office said in a release.

"This increase will help some of New Mexico's hardest working families, and it is a fitting legacy for one of the hardest working, best-loved members of the Legislature," Gov. Bill Richardson said.

Richardson was referring to Senate President Ben Altamirano, who died at his Silver City home Thursday. Altamirano had sponsored the minimum wage bill in the last legislative session.

Along with the raises, consumers might also see an increase in prices.

Kevin McGrath, who owns the Burger Time restaurants in Las Cruces, said the wage increase will cost his company about $90,000 this year.

"That's $90,000 that's not just lying around on the bottom line. We're going to have to raise our prices," he said. "I'm sure everybody else will have to."

Randy Stansell, who owns Stansell's Thriftway in Clovis, said the minimum wage increase won't make much difference to employees. He has few employees at minimum wage, but he has seen workers who took home less after a minimum wage increase because they moved into a higher tax bracket.

"It seems like inflation and taxes eat it up," Stansell said.

Phillip Archuletta, with the Las Cruces office of the state Department of Labor, said the differing federal and state wage increases have some people confused.

"We're getting a lot of calls this month," he said.

Archuletta said employers must pay whichever minimum wage is higher - the federal or the state - at any given time.