California minimum wage to increase to $9/hour beginning Tuesday

PASADENA, Calif. (KABC) -- Many California workers will see a bump in their paychecks this week as the state minimum wage goes from $8 to $9 per hour on Tuesday.

This is the first increase to the minimum wage in six years, but not everyone is happy about it. Some shop owners are worried they will have to pass the higher cost of doing business onto their customers.

John Farah, co-owner of sandwich restaurant Which Wich in Pasadena, which opened six months ago, says the state's new minimum wage increase is going to take a big bite out of their bottom line.

"With minimum wage going up, a lot of things go up. Produce goes up, our employees' wages go up. The thing that worries us the most is, do we raise prices? Everybody else's prices are going up," said Farah.

California's minimum wage will go up to $10 by 2016. When Gov. Jerry Brown signed the increase into law, he said it was his moral obligation to help bring a living wage to a state with one of the highest costs of living.

"It means that it's easier to pay rent and utilities, take care of the children," said Which Wich employee Dessie Hollis.

But it may be a double-edged sword for minimum wage workers as many employers say they may have to hire fewer workers and cut hours in order to cover costs.

At Which Wich, Farah says the new minimum wage will cost them an extra $30,000 a year. Add in all the other costs expected to go up because of the wage increase and it's likely customers will be paying the price.

"If we're the first ones to raise our prices then we may scare customers away. And if they leave, they may never come back," said Farah. "This could be really detrimental to our stores."