The state constitutional amendment, which takes effect Nov. 28, raises the minimum wage to $1 above the federal rate, currently $5.15 an hour.

But if Congress raises the federal minimum wage to $7 or more, as many suspect it will, that could mean Nevada businesses will have to shell out close to $8 or $9 an hour for the busboys, dishwashers, cooks and cashiers who make the lowest wages.

And the increase could also force business owners to raises salaries for those making just above the minimum wage.

The amendment "could very well impede the growth of small businesses, as well as have a chilling effect on attracting new businesses to our state," said Cara Roberts, a spokeswoman for the Las Vegas Chamber of Commerce. "With a higher minimum wage we're less competitive. And businesses really, truly look at those bottom line factors when they make decisions."

But labor advocates say the increase was necessary, and won't cause the fallout businesses are predicting.

"You can't eat off $5.15 an hour. At the end of the day, we value work and we value workers, and you can't expect someone to work 40 hours a week and not be able to eat," said Danny Thompson, executive secretary-treasurer of the Nevada AFL-CIO.

Thompson said California's minimum wage is $8 an hour, and a $6.15 an hour minimum wage in Nevada would still be competitive. He also said workers will spend their increased wages right here in Nevada, further spurring the economy.

He said one in four minimum wage earners is a single mother and more than 70 percent are over 20 years old. The average minimum wage worker works full time more than 70 percent of the time.

Thompson also said it's unlikely a minimum wage bill would get the votes to override a presidential veto.

"I truly believe that if the federal government raised the minimum wage, George Bush would veto the bill," he said. "I don't believe the sky is falling."

The AFL-CIO estimates that up to 100,000 people in Nevada make between $5.15 and $6.15 an hour, and would be affected by the increase.

But the Nevada Restaurant Association, a major opponent of the increase, said a study it commissioned estimates the number of minimum wage earners at only 6,000 — much less than 1 percent of the workforce.

But some say the new indoor smoking ban could have more of an adverse effect on the economy than the wage increase.

"The minimum wage in harmony with the smoking initiative might cause some adverse economic effects," said Terry Johnson, director of the Nevada Department of Employment, Training and Rehabilitation.

He said some bars may eliminate their kitchens — and the low-wage workers in them — altogether because of a prohibition on smoking in bars that serve food.

Johnson said he will also be keeping track of whether minimum wage workers are forced to work harder or more overtime because of the wage increase.

"Our economy has been so robust that employees can typically demand more for their services," said Johnson. "One of the worries I have is that as the minimum wage starts to increase, are employers going to turn to other sources, less legal sources, for their labor?"

Johnson said business may turn to illegal immigrant workers, who may still be willing to work for $5.15 an hour, to do the jobs previously done by citizens or legal residents.

Johnson also questioned how well the state would enforce a provision that allows employers who offer health insurance to forego the wage increase.

Labor Commissioner Michael Tancheck said he is working to define the minimum standard for a health plan to meet the requirement, but doesn't intend to go looking for employers who are bending the rules.

"We have enough business coming through the door without trying to drum up more," he said, adding that his office will pursue complaints from workers.

Business advocates maintain that the high cost of health care makes it unlikely that employers would choose to add health-care coverage instead of paying the increased minimum wage.

Any increase in the federal minimum wage would cause Nevada's minimum wage to increase the following July, according to Tancheck.

But he said he expects the amendment will end up in court before any federal increase would take effect.

For more information on the amendment, visit www.laborcommissioner.com.