Impact Of Proposed Minimum Wage Increase Likely To Reach Customers
PITTSBURGH (KDKA) -- The proposed hike in the minimum wage is likely to increase costs for customers, one local business owner says.
On Wednesday, the Senate passed a bill to raise the state's minimum wage to $9.50 by 2022.
The state's minimum wage has been stuck at $7.25 for more than a decade.
"That's something we're going to have to plan on," small-business owner Dane Marshall told KDKA money editor Jon Delano on Wednesday. "It's something that will impact our business."
Under the proposal, the state's minimum wage would move to $8.00 on July 1, then $8.50 on Jan. 1, 2021, then $9.00 on July 1, 2021, and finally $9.50 on Jan. 1, 2022.
Marshall employs 97 people at four family-owned Bob's Diners.
"I'm sure my customers will understand we're going to have to raise prices to cover that additional expense," she said.
Marshall knows it will impact what diners pay workers, but she already pays more than the current minimum wage.
"We're not far from that right now, anyhow," Marshall said. "Right now, it's very tough to find people, so $9.50 is not outrageous."
This Senate bill is a compromise.
Governor Tom Wolf wanted to raise the minimum wage to $15.00, but Republicans who control the legislature refused.
Senate Republicans agreed to the lower amount, but there is no deal yet with House Republicans.
Marshall says she can live with the compromise, but it will be passed along to consumers.
"We're operating pretty leanly so to absorb that kind of increase, which is 25 percent, we're going to have to do something about that," Marshall said.
