Businesses Push Back Against Proposed California Minimum Wage Hike

SACRAMENTO (CBS) – Some lawmakers are making a new push to raise the minimum wage in California, but businesses owners are pushing back.

California AB 10, introduced by Assemblymembers Luis Alejo and Michael Allen, would raise the minimum wage in the state from $8 per hour to $8.50 per hour.

Jeff Dawkins, a downtown Sacramento valet driver who works 7 days a week for minimum wage, said he would welcome the increased income, especially with the price of basic commodities climbing high.

“I’d definitely be in favor of that,” he said. The extra income would especially help with the costs of raising his daughter, he added.

Derar Zawaydeh, the owner of Sacramento restaurant Burgers & Brew, said the increased costs would squeeze his business and cost him much more than the simple 50 cents per hour.

“You’re talking about all the expenses associated with it in terms of taxes, in terms of workman’s comp,” he said.

The real cost is closer to 80 cents an hour, but with all his employees, that adds up to thousands in extra costs per week. That would force Zawaydeh to charge customers more, give fewer hours to employees possibly even lay off workers.

“It might increase 50 cents for an individual but you’re going to lose a good percentage of your employment,” he said.

Dawkins said he isn’t surprised that business owners feel they can’t spare the cash, but still says employees need more money.

“I personally feel like they can afford it,” he said.

The legislation would also provide for an annual adjustment of the minimum wage each year to match inflation or deflation.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services may have contributed to this report.)

Comments

One Comment

  1. genomega1 says:

    “Dawkins said he isn’t surprised that business owners feel they can’t spare the cash, but still says employees need more money.
    “I personally feel like they can afford it,” he said.”

    Has this guy ever written a paycheck in his life?
    An extra $1,000 a week in expenses is a lot of burgers.

  2. Art says:

    Its about time Sacramento reacts to the needs of the California citizens in term of living expenses. For many years, Californians have been pushed and forced to live live chickens in a farm, sharing living rooms and bedrooms cause they don’t get paid enough to live like human being and feel good about themselves and feel they have some self respect cause they can afford to live in their own rooms or own apartments. I am going to say it like it is, and if anyone dares to challenge me, we can go at throat, for the prices they charge for their good sold, whether perishable or not, leaves them (with some exceptions of businesses truly not doing well because of the economy) enough to wipe their mouth with toilet paper, that is how full of $h!t they are. When you have a mark up well beyond 200% or 300%, you know they are doing well if their merchandise in and out is constant (such it is in most Asian and other cultures restaurants hiring illegal foreign international students), or businesses claiming losses when in reality, they either take it home themselves for their own consumption and that of their kids, while the IRS swallows the story. I can’t believe, many of us were making $8.50 to $15.89 an hour in 1979 and $ 3.75 and $ 4.95 in more menial position and now these people are making only 7 and change in 2011. The first thing California has to do, is combat illegal immigration (Mexican, Latin Americans, Chinese, Irish, etc) in the blue collar trades like construction, restaurants, and labor gigs. Then, they should start to crack down on all the San Francisco Chinese (mostly) Russians, and Latin Americans home owners renting illegal units and bedroom in their garages and back yards. And, don’t even think of challenging me cause I can take the IRS to more than several dozens in Daly City, San Francisco, and else. Plus I am sure there are many more in all other cities doing the same thing. If, the IRS and City and State were to investigate how is it possible some of these people can buy home in neighborhoods where house are almost $1M worth, and their income does not reflect enough to be qualify to purchase those homes, they would be surprise how stupid they have been by allowing more minorities in the system to break the codes, 2- them being passive and walking around pretending plus stupidly liking these tax cheaters. These are millions of dollars in taxes that have not been collected in years. How about those Chinese renting illegal units and bedrooms earning up to two thousand dollars and their kids being in financial aid (LO) stupid……..yes, that is how moronic citizens and our government has become. Now, I won’t say Government Agencies are the only fools mesmerized by some slants, but a lot of the idiots going after the daughters of those cheaters, and while knowing it, they turn their hypocritical self respect and pretentious integrity for a piece of tart while calling themselves Americans (F U). I know that among them, there are quite a few who are honest, because there are!, but most of them abuse our system, and us all know it, and we let it happen! If, the IRS, INS, were to demand Foreign Students and Nationals to declare their place of residence at all times and whom they pay rent to, they would be surprise how much money they could collect. They should make Universities and Colleges report this information to the IRS, for they benefit from Federal Government FUNDS.

  3. purpleguy45 says:

    i actually agree with the businesses. i posted quite a bit of reaons why here on my blog. feel free to comment on there and let me know how you feel. http://goo.gl/slzmn

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