Minimum wage hike takes effect Friday

Washington, D.C. - The federal minimum wage goes up 70 cents today, from $6.55 to $7.25 an hour.

Backers of the increase say it's long overdue for millions of the nation's working poor.

But some economists say the increase could prolong the recession, by forcing small businesses to lay off the same workers that the pay hike was meant to help.

Minimum wage advocates counter the wage bump will keep more working poor afloat, and say more increases are needed to help stimulate consumer spending and strengthen businesses in the long run.

Thirty states have no minimum wage or one that is lower than the $7.25 federal minimum, which takes effect Friday and trumps state laws setting lower floors. Seven states have a minimum equal to the federal one.

Places with higher minimums include:

California - $8
Colorado - $7.28
Connecticut - $8
Illinois - $8
Massachusetts - $8
Michigan - $7.40
New Mexico - $7.50
Nevada - $7.55
Ohio - $7.30
Oregon - $8.40
Rhode Island - $7.40
Vermont - $8.06
Washington - $8.55
Washington, D.C. - $7.55