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California minimum-wage jump to hit virus-battered companies

Virus Outbreak-California Minimum Wage
Posted at 3:43 PM, Jul 29, 2020
and last updated 2020-07-29 18:43:17-04

SACRAMENTO — California workers will get a promised jump in the state's minimum wage next year, but the higher costs represent another challenge for businesses staggered by the coronavirus outbreak.

Democratic Gov. Gavin Newsom says he had the authority to suspend the increase to $14 an hour for larger employers in 2021. But he says those dollars will help lower-income workers who have already borne a disproportionate share of the economic hardship caused by this pandemic.

Business groups say the increase could push even more restaurants, retailers and other small businesses toward disaster, as they struggle to survive amid the outbreak.