On January 1, the minimum wage in California went up $1 per hour, from $10.50 to $11.50. This hike is only the first increment in a series that's supposed to result in a $15 per hour minimum wage. Many residents were supportive of the minimum wage hike, but now they're complaining that restaurants are charging more to recover the cost.
A 'California Mandate' surcharge has been appearing on bills across the state. The 3% surcharge is meant to offset the cost of labor expenses caused by the minimum wage increase.
Julian Gallardo of San Diego went to dinner with his family at Liberty Station's Sammy's Woodfired Pizza on Monday and was taken off guard by the additional charge. "I wasn't told there was going to be an extra charge on my ticket. They should've told us or put up a sign out front saying 'hey we're charging an extra percentage,'" he said.
"The surcharge works better than raising prices and helps offset additional operating expenses," said David Cohn, leader of the Cohn Restaurant Group. "It's something being done all over the country."
Gallardo doesn't think the charge is fair. "They just have to sell more; invest in marketing, sell more, and don't charge it on the customers."
Of course, if they start selling more, they’ll have to hire more workers.
Source: Fox 5
Photo: Fox 5