Businesses Prepare To Absorb Cost Of California's Minimum Wage Increase
SACRAMENTO (CBS13) — As California's minimum wage rises to $10 an hour on Jan. 1, business owners are looking for ways to absorb the cost.
Dave Leatherby is still serving ice cream to his loyal customers decades after he opened Leatherby's, following in his father's and grandfather's footsteps.
"Somebody who's never owned a business, a politician thinks, 'Gosh let's just pay someone a fair wage, it'll be passed on to the public'—it isn't in some cases," he said.
With the state minimum wage going up to $10 an hour in January and Sacramento's minimum wage moving to $12.50 by 2020, Leatherby says he's forced to consider firing 30 percent of his staff, almost 100 people, mostly high-school students.
"These young people that support themselves, and you know the single moms who work a few days a week and make good money because of their tips, so who is this helping?" he said.
At Temple Coffee a sign on the door reads that a cup of coffee will cost up to 5 percent more, but many customers like Rick Bienkowski say it's not a total buzzkill.
"I'm retired, but I also work a secondary job just above minimum wage, and i don't know how people do it. And i can't see how people do it," he said.
Sacramento workers recently filed a measure to boost the local minimum wage to $15 an hour, following in the footsteps of Los Angeles, San Francisco and Seattle.
Fabrizio Sasso of the Sacramento Central Labor Council says it's a good start. "What we're trying to do is establish a minimum wage help people afford basic necessities, you know rent, food," he said.
A controversial, yet trendsetting fight, despite concerns over price increases and businesses struggling to keep up.
Two ballot measures are also asking voters to increase the statewide minimum wage to $15 an hour.
