California's minimum wage workers are getting a raise

Saturday, June 28, 2014
California's minimum wage workers are getting a raise
On Monday, the state's minimum wage will increase from $8.00 to $9.00 an hour.

FRESNO, Calif. (KFSN) -- On Monday, the state's minimum wage will increase from $8.00 to $9.00 an hour.

Small business owners, especially restaurant owners, say this mandate is bad news for business.

Dining out for some of us is a treat, and for others a regular event. Either way, you'll soon notice a change on your bill, if you haven't already. Restaurant owners say a mandatory $1.00 rise in California's minimum wage will force a price increase for their customers.

Lorraine Salazar said, "And some will use the opportunity to raise them again even if they have raised their prices. That's inevitable. We all, in the hospitality restaurant business, need to raise our prices to help offset this government mandated minimum wage we're facing."

Salazar owns the three Sal's restaurant locations in the Valley, and she's the president of the Fresno restaurant association. She says to keep the food coming from the kitchen, they will need to find the money for their host and server raises somewhere.

"This increase directly comes off that bottom line, at what point is there going to be a bottom line if you don't raise your prices," said Salazar.

California's minimum wage is already higher than the national average of $7.25 an hour. And Salazar says there's a major trickledown effect. Citing what she says is the heart of the restaurant, the kitchen staff, which typically makes several dollars above minimum wage. She says the ones making the food will eventually be asking their bosses to also receive a comparable pay raise to their minimum wage coworkers.

Customers like Martha Mariscal, say restaurants will survive the mandated wage hike. And the price increase won't stop her from dining out.

Mariscal said, "I mean a lot of people spend a lot of money on shoes, purses, sunglasses, clothes."

ABC30 asked, "But, restaurants, that's where you'll go?"

Oh yes," replied Mariscal. "That's what I support."

Minimum wage will jump again in 2016 to $10.00 an hour.