Wage increase would benefit 36,000 locals

If the minimum wage bill passed by the state Legislature becomes law, it would boost the paychecks of at least 36,000 workers in the region south of Boston , according to a study by the non profit Massachusetts Budget and Policy Center .

The legislation -- which raises the minimum wage from $6.75 to $8 an hour -- was sitting this week on Governor Mitt Romney's desk. Romney has until Sunday to either sign or veto the bill; if he does nothing, it automatically becomes law.

If Romney rejects the bill, Democrats in the House and Senate need a two-thirds majority to override the veto.

The bill does not involve indexing, or tying the minimum wage to inflation, which Romney had urged. Instead it raises the minimum wage in two steps: by 75 cents on Jan. 1 , and then 50 cents the following year.

Minimum -wage earners tend to work in hotels, restaurants, retail stores, and the service sector. The hike would affect at least 315,000 workers statewide, as well as more than 36,000 in the region, according to data from the study. The data include people earning the minimum wage and those who earn slightly more.

The Legislature last voted to raise the minimum wage in 1999.

An increase would present businesses with a dilemma, said Jon B. Hurst, president of the Retailers Association of Massachusetts, a 2,000-member trade association.

``Do you hire less people to keep labor costs down, or do you raise prices?" he said.

Usually, said Hurst, ``they do a combination."

The increase also might make some employers a little more reluctant to hire people, he said, especially teens in entry-level jobs, who tend to be less productive and typically work for shorter periods of time before quitting.

Advocates cheered the legislation, saying the wage increase would help ease the financial pressures of hard-pressed workers at the lowest end of the wage scale who have been battered by soaring rent and energy costs.

``It means that people who work hard and play by the rules and get paid minimum wage will have higher pay for food, clothing, and shelter," said Noah Berger , executive director of the Massachusetts Budget and Policy Center.

Jonathan R. Carlson , executive director of Avon -based Self Help Inc., said the hike would aid many of the 10,000 households in 31 communities served by the nonprofit, which provides fuel assistance, a food pantry, and other aid for those who are struggling to make ends meet.

``We have clients who can't pay the rent," said Carlson. ``This is a step in the right direction. We'd like to see more."

Some businesses suggested that the increased minimum wage -- if it becomes law -- would have a ripple effect on the restaurant industry, because those who earn a dollar or two more than minimum wage now would expect raises as the minimum was raised.

Janine Harrod , director of government affairs for the 2,000-member Massachusetts Restaurant Association , said she expect s the wage hike would drive up food prices, especially at fast-food restaurants.

``This will affect restaurants' bottom line," she said.

Mark McBee , an owner-operator of McDonald's restaurants, said there would be a definite impact, but it's not clear how large it would be.

Line workers at his restaurants typically earn from minimum wage to about $9.50 an hour, said McBee, who has restaurants in Brockton , West Bridgewater, Bridgewater, and other communities.

``It's certainly something we will monitor and track , and most likely we will have to make some adjustments," including on prices, he said.

Matt Carroll can be reached at mcarroll@globe.com.