Mar 29, 2016 11:39 AM EDT

US $15 Minimum Wage Sparks Battle Between Government and Business

Manufacturers and retailers in California are gearing for a fight with U.S. legislators over the prospect of increasing the minimum wage from $10 to $15. Business leaders warn that this wage hike would endanger Inland Industries.

Sen. Mark Leno, D-San Francisco announced on Saturday that labor unions and legislators had arrived at an agreement that will increase the minimum wage to $15 per hour by 2022. This would be the highest minimum salary for workers in this country so far.

According to the tentative agreement, the existing $10 per hour which started on Jan. 1 will be incrementally increased to $15 in the following six years. Small businesses were given special consideration by giving them one additional year to comply.

At the start of 2017, minimum wage hike will be $10.50. It will steadily increase until it reaches $15 by 2022.

If the lawmakers approve the proposal, it would be a statewide standard amidst a time when labor groups and unions are pushing for increase in wages from their local government.

San Diego, San Francisco and Los Angeles are the cities that have favored the increase. But there are other municipalities who are not amenable to the idea. This prompted observers to wonder if some businesses will push for exemption from the minimum wage requirement.

With this news coming out, both employees and employers did their arithmetic. In some instances, their answers are quite different.

Selwyn Yosslowitz, Marmalade Cafe co-founder said that his seven restaurants are already operating on slim profit margins. The new minimum wage hike proposal gave him enough concerns. He said even the gradual increase would affect his revenues.

His waiters will receive significant pay raises and his managers and cooks as well. The statewide wage hike implementation made him think about the way to "re-engineer" his menu and staff.

"First you have to raise prices, otherwise you'll be out of business," said Yosslowitz.

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