The true cost of California’s minimum wage hikes

California has been on a minimum wage hike tear.  The Golden State's minimum wage has risen by 29% since 2007.  By 2022, just 4.5 years from now, the minimum wage will skyrocket to $15/hr., an additional 30% increase from its current rate, or exactly double its 2007 rate! Since my company is levered to low-end pay scales, that means my gross labor expenditures will have doubled in that short amount of time.  Meanwhile, sales certainly have not, nor do I expect they will. So where exactly will the difference be made up? Why, on the most productive, of course!  Since minimum wage hikes are essentially a tax on the productive, that means they come out of everyone else's pocket who is not at minimum wage level. At every payroll, just before I submit, I briefly audit the checks to make sure there are no mistakes.  While glancing across the screen again this week, I was reminded of this sad truth.  As wages have eroded profitability, our...(Read Full Post)