FRESNO, Calif. (KFSN) --Legislators are working on a deal that would make California the highest minimum wage state in the nation.
Craig Scharton, the owner of Peeve's Public House in Downtown Fresno, says this is a big decision that could create even bigger problems down the line.
From $10 to $15, that doesn't sound that big to people until you see it is a 50 percent raise and Scharton employs about 12 people who all make minimum wage. He says if the state makes the $5 increase he will be left with no choice but to change the way he runs his restaurant.
"It can be dealt with by either raising prices or by cutting staff or cutting days or cutting hours," Scharton said.
California legislatures and labor unions reached a tentative agreement Saturday to hike minimum wage by the year by 2022. It still needs to be approved, but Scharton says a deal of this kind could make it even harder for small businesses to stay afloat.
"I do believe that people should have a living wage," Scharton said. "But I think we need to look by industry and size of the business and by regions in the state."
Kalen Null is a server and bartender at Peeve's, and she says she's worried what this will do to job security.
Local businesses are really going to get hurt by it because now they aren't going to be able to afford to necessarily pay everybody so they're going to have to cut down on staffing and now customer services is not going to be as efficient.
Null is also concerned what this will do to tips.
"People are going to be paying more so they are not going to want to tip as high which is going to suck because we live off of our tips," she explained.