How will a minimum wage hike hit businesses?

Thirteen states increased the minimum wage on Jan. 1, and President Obama supports raising the federal rate to $10.10. 4 small business owners weigh in on how an increase would affect them.

High-school employees would be first to go

minimum wage 7 eleven
  • Business: 7-Eleven
  • Location: Massapequa, N.Y.

For Patricia Orzano, who owns a 7-Eleven on Long Island, her high school workers will be the first to go as the minimum wage increases.

In the state of New York, hourly wages went up to $8 from $7.25 on Jan. 1 and will increase to $9 by 2016. And the could go even higher if a Democratic proposal to raise the federal minimum wage to $10.10 is passed.

"What really scares me is the federal raise. It's so totally unaffordable," Orzano said. "It will require me to cut hours across the board or cut part-timers."

She has 13 hourly employees, five of whom work part-time.

Orzano currently has one high school-aged employee who works eight hours a week, although she usually hires one or two more high schoolers in the summer who each work 15 hours a week.

She said she won't hire untrained workers if she has to pay them $9 an hour -- the same wage that some of her more experienced, full-time workers make now.

- Last updated January 27 2014 03:53 PM ET
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