Nrn.com - Restaurant brands’ response to President Obama’s call for a raise in the federal minimum wage thus far has been muted, but industry watchers said the proposal would likely cause labor pains for foodservice companies if it becomes law.

In his Feb. 12 State of the Union address, President Obama suggested the federal rate move from $7.25 per hour to $9 per hour. The federal minimum wage was raised to $7.25 in 2009, while the federal tipped minimum wage for servers has remained at $2.13 since 1991. Currently, 19 states have their minimum wages set at both federal levels, while the remaining 31 states and District of Columbia are a patchwork of their own minimum rates, including 10 states that tie their minimum wages to inflation, as the president has proposed for the federal rates. Continue

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