Massachusetts Approves Nation's Highest Minimum Wage

Massachusetts Senate has approved the nation's highest minimum wage of $8 an hour, angering some small businesses. It is expected to pass the state's House next week and will begin to apply in 2008.

"We are very disappointed," said Erin Trabucco, general counsel for the Retailers Association of America. "It's hard for small businesses to deal with the wage increase. They'll be left with no other option than to raise costs to their consumers." According to Trabucco, the wage increase and potential price hikes that ensue will be especially hard for small businesses in Massachusetts that are close to the border with New Hampshire, where the minimum wage remains at the federal level of $5.15 an hour. "It will be hard to remain in business, due to the competition," she said.