MINIMUM WAGE GOING UP HIGHER PAY MAY BRING HIGHER PRICES MONDAY.

Byline: Brent Hopkins Staff Writer

Monday will bring a New Year's present to California workers: a 50-cent increase in the state minimum wage to $6.25.

After an Oct. 23 decision by the California Industrial Welfare Commission, the minimum wage will climb from $5.75. In 2002, it will rise to $6.75.

Not everyone will be celebrating, however. Business owners looking to make up costs elsewhere might jack up prices, as well. Economists predict small increases in retail prices will accompany the wage jump.

``When an increase is coming, businesses know,'' said Jack Kyser of the Los Angeles Economic Development Corp. ``When you go to your favorite restaurant, they have new menus with the prices all going up 5 cents here, 10 cents there.''

Restaurateur Blair Salisbury said the popular Mexican dishes at El Cholo Cafe that sell for $8.25 each will be pushed up to $8.50 in January because of the minimum wage increase.

Salisbury's restaurant employs 130 people, 45 percent of whom are paid minimum wage, he said.

``This won't compensate for the increase, but it will soften the blow,'' he said. ``We don't lay employees off; we believe you just have to be more creative in your pricing and menu development.''

Though past hikes have had scant impact on the California economy, tight times could make this one more significant. Jumps in operating costs stemming from statewide increases in power and natural gas might force businesses to curtail development to make ends meet, Kyser said.

``The reality is that the worker will see a modest increase in their paycheck and the owners will have to reconsider their options,'' he said. ``Maybe they'll put their expansion on hold, maybe they'll automate, maybe they'll eliminate a position.''

Not all predictions are quite so dire. Many small businesses rely on non- minimum-wage employees, so the impact is lessened.

``We're aware of the increase, but I only have one of those employees,'' said Earl Broidy, owner of Panorama Compounding Pharmacy in Van Nuys. ``It won't hurt us too much.''

The same is true for some larger corporate entities, as well. The Reseda location of Hollywood Video has only one minimum-wage earner, but is looking to hire more, said store manager Sergio Ibanez. Accordingly, a jump in the minimum wage will not significantly impact store operations.

``That's cool, I've got no problem with an increase,'' Ibanez said. ``It'll probably help a couple of people, but I doubt it'll make much difference for most.''

Those on the receiving end praised the increase.

``It'll be a big help for me and my bills,'' said Melyna Ramirez, a part- time sales clerk at Elegance for $1.00. ``It's better than $5.75.''

Jack Mosley, 16, was cautious in his approval of the hike. Though he lives with his parents and works merely for spending cash, the Reseda resident isn't look forward to increased prices along with a raise in pay.

``It's a good thing,'' he said. ``As long as the price of other stuff doesn't go up along with it.''

Staff Writer Jennifer Parsons contributed to this report.