Implementation of the new federal minimum wage law might cost NIU more than $450,000 in salary increases by April 1991.

The new law will affect nearly 5,000 on-campus NIU employees as the federal minimum wage will increase to $3.80 per hour in April 1990 and to $4.25 in April 1991.

Although the wage increase is not federally mandated for state-run institutions, NIU does expect to pay the new minimum to its student employees.

“Historically, NIU has always followed whatever the federal minimum wage law has dictated,” said Jerry Augsburger, NIU student financial aid director.

April 1, 1990, will be the first minimum wage increase in over 10 years. Without knowing when any type of increase would be adopted, NIU raised the on-campus minimum wage to $3.75 for this academic year.

“I think most administrators have felt for a long time that something needed to be done,” Augsburger said. “Not being increased in 10 years, people whose salaries were being determined by the old minimum wage were being left far behind financially.”

Augsburger said he feels low wages in the past have shown an increasingly slow demand for on-campus employment.

“I hope now that wages are being improved, we’ll see more students opting for (on-campus) employment,” he said.

Most on-campus employees, who currently work for $3.75 per hour, are working in places that generate revenue. Augsburger said he feels some of the $450,000 might have to be absorbed directly through costs to the consumer. “As we pay student employees more, the money is going to have to come from somewhere,” he said.

Augsburger said the initial minimum wage increase to $3.80 per hour should have little impact on the 1990-91 academic year because residence hall food service workers are currently paid a minimum wage of $3.90 per hour. Food service is the largest on-campus employer, he said.

However, Augsburger said, the wage increase will be evident when the minimum jumps to $4.25 in 1991.