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California minimum wage to go up, local businesses react

Beginning Jan. 1, the minimum wage in the state of California will be going up.

Posted: Dec 27, 2019 10:25 PM
Updated: Dec 27, 2019 11:09 PM

CALIFORNIA - Beginning Jan. 1, the minimum wage in the state of California will be going up.

Employers with 25 or fewer employees will be paying them $12 per hour but employers with more than 25 employees will have to pay them at least $13 per hour.

The chart above goes all the way to 2023, where all employers will have to pay their employees at least $15 per hour.

"Every time they raise minimum wage, I have to raise prices," said Bidwell Park Pizza owner, Tanya Rubio. "Then people get upset, but I am like 'I am sorry, what do you want me to do? It is a small business.'"

She says her employees are excited for the $1 raise, but as an owner, she needs to figure out how to save money.

"You got to cut payroll down, then you have to do this, and raise prices, you have to be creative about it," said Rubio. "Sometimes it is exhausting, but you know you just got to do it."

She says her shop raises prices on everything.

"Because you know like Sysco delivers food to us, so they went up because they had to pay their employees too, so it fluctuates like big circles," she explained.

Rubio says her customers are understanding of the prices going up.

One retail owner in Downtown Chico says it does not impact his business too much.

"It does not have that big of an impact on our store, I think our employees are already delivering value more than minimum wage, so they are being paid more than minimum wage," said Diamond W. Western Wear owner, David Halimi.

Halimi said he thinks the minimum wage increase will impact the food and beverage industry the most.

He added if costs in his store do go up, it is indirectly.

"It may simply go up because the supplies go up," said Halimi. "So the boots and the hats and the clothing we purchase may come to us at a higher cost because of the higher labor costs and the transportation and so forth."

Cities and counties are allowed to enact their own minimum wage rates but not less than state requirements.

To learn more minimum wage, CLICK HERE.

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