If you're a responsible hiring manager you'd better damn well know what your employees are worth relative to the work you need them to do or you'll loose your shirt. You answered my question as to how you pay them? Minimum wages do nothing to help you hire competent workers because as you said, you pay above market scale to attract better employees. Federal minimum wages set arbitrarily regardless of employee competence or market conditions are two more solid reasons to avoid them.
As a hiring manager, you need both the flexibility as well as business acumen to pay no more than what your employees are worth to attain your bottom line efficiency and profitability, and to compensate them based on your particular market demands and business requirements. Government can not and should not "dictate" those independent business decisions to you or anyone else responsible for running a free market enterprise.
One size fits all minimum wage laws are well intended, but are not practical and your example is just one of many reasons why they simply do not work.
Appreciate the response.
(Hey you and I are doing better than some of these other bloggers adhering to the new "civil discourse" rules outlined in that infamous "olive branch" thread the other day wouldn't 'ya say?)