Minimum wage hike may hurt California businesses

Minimum wage hike may hurt California businesses

The recently approved increase in the hourly minimum wage in California will hurt businesses because it will further boost the already-high cost of labor, businessmen believe.

On Monday, California Gov. Jerry Brown signed legislation that will gradually increase workers’ minimum wage across the state to $15 per hour by 2022.

Businesses, particularly small businesses, are now finding themselves caught between a rock and hard place because increase in workers’ pay will inflate their costs of doing business.

Brian Hibbs, the owner of a small graphic novel & comic book store Comix Experience, said the new legislation will hurt small businesses like his. He explained that his payroll will jump to $40,000 by the year of 2018 just to cover his half a dozen employees.

Speaking on the topic, he added, “I don’t think this was thought through. The cost of labor is so high. It’s very, very difficult to run a profitable business at this point.”

The new legislation states that the minimum wage in California will rise to $10.50 an hour in 2017, $11 an hour in 2018, and then by $1per year until its reaches $15 per hour by 2022.