DELAWARE- Now that we're into the new year, minimum wage workers in Delaware are making $1.50 an hour more than just last week. In 2023, the minimum wage in the first state was $11.75, and as of January 1st, 2024, that rate is now $13.25.
In Maryland, Governor Wes Moore signed a bill to accelerate the state minimum wage increase. It went from $12.50 in 2023 to $15.00 an hour in 2024. The Maryland and Delaware State Director at the National Federation of Independent Business says the hike is putting a pinch on small business.
"They're saying, Look, inflation is killing us. The cost of goods is going up," says Mike O'Halloran, National Federation of Independent Business' state director for Maryland and Delaware. "Add on top this wage increase that the General Assembly handed down to small businesses, they have no they have no choice but to raise their prices on their customers and consumers."
One local store worker in Bethany Beach says the wage increase is necessary.
"With the housing cost continuing to rise, people need to live, and support themselves, and it's very hard to do that on such a low minimum wage," explained Sabrina Werner, who works at Freak Tiki T's.
Hope also hopes the increase will encourage people to take jobs that have been hard to fill recently.
"People that work in retail or the restaurants, they're needed, people have to work those jobs in order for other people, so I just think it should be a more even playing field," said Werner.
Another small store worker is happy about the increase because it will help her pay her bills more easily, but she understands why the higher rate could put stress on small businesses.
"Especially in a resort town like Bethany Beach, business can be quiet here after the holidays, so sometimes I do feel guilty about working, but my boss said if we're not open we don't have the possibility of making a sale, and I see both sides of the argument," said Karen Blimmel, who works at J J Stones in Bethany Beach.
Delaware's minimum wage is set to increase to $15 per hour in 2025. In each state, workers who earn at least $30 in tips a month still receive a much lower base rate-- $2.23 per hour in Delaware and $3.63 an hour in Maryland.