Minimum wage increases across California

Minimum wage workers in California are getting a little boost this new year.

The state’s hourly rate went up by one dollar on Tuesday, as part of a gradual increase that started two years ago.

Businesses with 26 or more employees must pay $12 an hour as the minimum wage, while employers with fewer than 26 employees must pay $11 an hour.

“I think it’s a good thing. I think it’s very important that people have a living wage, and even though it’s difficult for small businesses to afford, in the long run, it’s important that employees get enough money that they can live on,” said Trish Triumpho Sullivan, the owner of Downtown Book and Sound in Salinas.

Sullivan says with the way rent prices are now on the Central Coast, people can barely make ends meet.

“Someone who has a kid or two, or even if they don’t have a kid, it’s really hard to find a place you can afford and also afford food and other necessities,” she said.

“That’s the single biggest cost that most people face here in Salinas… is housing,” said Salinas Economic Development Manager Andrew Myrick.

Myrick says the cost of food, clothing and gas in the city is similar to others across the state, though there is a much higher cost of living here compared to some other states.

But Myrick says it is too soon to tell how this bump will impact the economy.

“We don’t know what the net benefits are,” he said. “As with any policy, there’s going to be some people that are better off and some people that are worse off.”

Myrick says there have been plenty of studies that show both the pros and cons of increasing minimum wages. And he says it is possible the increase could lead to higher prices.

“Like any other impact will…if the price of beef goes up, then steaks cost more,” said Myrick. “If the price goes up, then anything that requires labor costs more.”

And as the minimum wage is on its way to reaching $15 an hour in 2023 for all businesses, employers like Sullivan say there may be a need for some scaling back.

“I believe we need to have a training wage for teenagers, people who need training, who have never had jobs before,” she said. “It’s different to have a living wage for someone who’s raising a family to a teenager who’s just living at home and doesn’t have to pay rent.”

Myrick says from a city standpoint, they simply do not know the net impact of a higher minimum wage yet, but they will be watching closely.