Minimum wage hike takes effect Tuesday

WASHINGTON The federal minimum wage increase goes into effect Tuesday, rising 70 cents to $5.85 from $5.15 an hour. This is the first of three wage hikes to occur every summer for the next two years. By 2009, the minimum wage will be $7.25 an hour.

According to reports, while the wage increase is welcomed by workers, many analysts agree that the higher cost of paying employees will mean raising prices and laying people off to make up for the wage increase.