Texas-side minimum wage workers get a raise

The federal minimum wage rose 70 cents Tuesday to $5.85/hr., the first of three annual 70 cent increases that will set the minimum wage at $7.25/hr. in July, 2009. This first raise won't affect Arkansas workers since we previously raised the state minimum wage to $6.25/hr. in the 2006 special session (effective Oct., 2006).

Whether the 2006 legislation has made any difference here in Texarkana is hard to determine. Most people agree that prior to the change, there were few positions still paying the federal minimum since it hadn't been raised in 9 years. Regardless, Arkansas-side minimum wage workers loved it, and it may have attracted some workers from Texas, where the minimum wage remained $5.15/hr -- there's just no way to tell. There were some grumblings by Arkansas-side employers, who made the argument that it hinders economic development on the Arkansas-side. Like everything else, this legislation affects us here in Texarkana more than anywhere else in the state. As of today, the minimum wage gap on opposite sides of the state line has been closed from $1.10 to 40 cents per hour.