[California] Increasing minimum wage amidst a pandemic

On January 1 California’s minimum wage rose to $14 an hour. For businesses with 25 or fewer workers, the minimum hourly pay will increase to $13. Concerns are now being expressed over how the pay increase will affect local businesses already struggling from the economic impact of the COVID-19 pandemic. California’s minimum wage is scheduled to go up to $15 an hour in 2023.

At present many businesses across San Diego County are reportedly dealing with the repercussions of a rise in payroll expenses. While there are concerns rising wages will negatively affect struggling businesses, worker advocates say higher wages will help San Diego’s economic recovery.

Aldor Calderon - Director of the Employee Rights Center - said, “For all of us to thrive, and to get out of this, we’ll need spending power from everyone in our county to be able to go buy something.” The director argues that a rise in minimum wage will eventually help higher-earning employees increase their salaries but business owners have a different point of view. NBC San Diego has further details on the story and perspectives from employers affected by the change.

On January 1 California’s minimum wage rose to $14 an hour. For businesses with 25 or fewer workers, the minimum hourly pay will increase to $13. Concerns are now being expressed over how the pay increase will affect local businesses already struggling from the economic impact of the COVID-19 pandemic. California’s minimum wage is scheduled to go up to $15 an hour in 2023.

At present many businesses across San Diego County are reportedly dealing with the repercussions of a rise in payroll expenses. While there are concerns rising wages will negatively affect struggling businesses, worker advocates say higher wages will help San Diego’s economic recovery.

Aldor Calderon - Director of the Employee Rights Center - said, “For all of us to thrive, and to get out of this, we’ll need spending power from everyone in our county to be able to go buy something.” The director argues that a rise in minimum wage will eventually help higher-earning employees increase their salaries but business owners have a different point of view. NBC San Diego has further details on the story and perspectives from employers affected by the change.