Businesses brace for minimum wage hike

Business owners face a cost spike on Thursday, when minimum wage rises to $6.55 per hour.

(Fortune Small Business) -- With commodity, fuel and insurance costs hitting record highs, small-business owners are anxious about Thursday's federal minimum wage hike, which will require employers in 26 states and the District of Columbia to raise their base to at least $6.55.

The increase of the previous $5.85 per hour minimum wage is the second of three consecutive annual hikes mandated by a 2007 amendment to the Fair Labor Standards Act, known as the Fair Minimum Wage Act.

When legislators nationwide began a push two years ago for minimum-wage increases, Fortune Small Business found that many entrepreneurs considered the issue irrelevant. Amid a tight labor market, most owners were already paying higher-than-required wages to attract and retain workers, even entry-level ones.

Today's economic climate is very different. Prices for a wide range of business commodities, from gas to grain, are soaring. The Labor Department reported a net loss of 62,000 jobs in June, the sixth straight month of losses. The National Federation of Independent Business's (NFIB) latest installment of its monthly Small Business Economic Trends found that 18% of business owners polled cut staff in June.