Local officials fear the territory's economy will suffer under a new federal law that will raise the hourly minimum wage here by 50 cents July 24. There will be additional annual hikes of 50 cents until it reaches the new federal wage minimum of $7.25 per hour.

Depending upon the type of job, current minimum wages in the territory range from $2.68 to $4.09 an hour. The second largest tuna cannery here has already announced it will lay off more than 200 workers because of the initial 50-cent hike.

Kempthorne, whose department administers American Samoa and other U.S. territories, stressed at a news conference with Gov. Togiola T.A. Tulafono on Thursday that the law also mandates the U.S. Department of Labor to conduct a study eight months after enactment of the measure to determine its economic impact on the territory.

Kempthorne said the "key point we need to focus" on now is the required impact study, "when the Labor Department comes to Congress with an analysis of what are the implications of the minimum wage increases, the step increases that have been included in the law."

"My discussion with the governor and the leaders here, I think this is a real opportunity for us," Kempthorne said. "This is an opportunity for us to do the economy analysis. This is the opportunity to make the case."

He suggested that the Commerce and Defense departments should be included in the study.