COLORADO SPRINGS, Colo. -

The state's lowest paid workers are getting a pay raise come January. Minimum wage in Colorado will go up $0.28 to $7.64 per hour.

The adjustment follows a state law that requires minimum wages to annually keep up with the pace of inflation.

Local economist Fred Crowley said it will be a welcome boost to these workers. "It can mean a lot to that person," said Crowley. It's estimated, they will earn about $582 more per year.

Employers with a lot of minimum wage workers will feel the impact. Crowley said it will up their payroll costs dependent on the number of employees and that could impact the economy.

"We are just coming out of a recession. Local unemployment is 9.6% and things do not look like their improving. Businesses will try to pass cost on to people. But for businesses like fast food restaurants, people could buy less and in turn it could end up hurting unemployment," said Crowley.

Workers in seven other states including Montana, Ohio and Washington will also get a boost in wages.