Thousands of Utahns are in line for a raise because Congress has voted to hike the minimum wage, but their glee should be tempered with the thought that some could lose their jobs as a result.

Officials of organizations representing companies that have minimum-wage workers believe the minimum-wage boost could put enough financial pressure on some employers that cutbacks will be made. This is probably more true for rural than urban areas.Earlier this week the Senate voted 74-24 to boost the minimum wage from $4.25 per hour to $4.75 per hour just as soon as President Clinton signs the bill (which he has promised to do) and to $5.15 per hour a year later. The measure goes to a Senate-House conference committee to resolve some minor differences between the two bodies.

Ken Jensen, labor market economist for the Utah Department of Employment Security, said that based on 1995 figures supplied by the Bureau of Labor Statistics, 151,600 Utahns will get a raise when the law becomes effective. That is 16.2 percent of the work force.

He said since those figures were supplied, some people in the minimum-wage category have moved out of that situation.

Jensen said in light of Utah's 3.4 percent unemployment rate and the large number of jobs being created, many employers are paying higher wages to attract people and they aren't affected by the minimum-wage hike.

One of the industries that could be heavily affected by a hike in the minimum wage is restaurants. Melva Syme, Utah Restaurant Association executive director, said the impact will come mostly in the independent owner-operator restaurants in rural areas.

In addition to paying a higher minimum wage, the owners also must pay more Social Security taxes and still pay for medical leave, medical benefits and incomes taxes. Syme said the only way to offset the higher costs is to lay people off or not replace them when they quit.

Syme said she recently looked at the want ads for fast-food restaurants along the Wasatch Front and they are paying $6.50 to $7 per hour in trying to attract workers. Similar positions in rural areas are offering much less.

Jim Olsen, executive vice president of the Utah Retail Merchants Association and president of the Utah Food Industry Association, said in some areas, where employees are difficult to find, the minimum-wage increase will have little or no impact, but it will be felt in rural areas where there are plenty of workers willing to work for minimum wage.

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Olsen said the only alternative for small operators is to raise prices or lay people off. "It hurts the people the minimum wage was designed to help. It will fuel inflation and hurt people on fixed incomes," he said.

Patrick Poulin of Utah Issues said the boost in the minimum wage is a mixed blessing. "While we recognize the need for higher wages, even Utahns who earn wages higher than $5.15 per hour aren't making it in this economy," he said.

Tom Guinney, a partner in Gastronomy Inc., which owns several restaurants, called the comments by the National Restaurants Association that people will have to laid off "political rhetoric."

Guinney said he supports the boost in the minimum wage and noted that his company and the fast-food industry have paid more than the minimum wage for several years and will be unaffected by the boost.

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