Monterey County businesses prepare for minimum wage increase in 2023

MONTEREY COUNTY, Calif. (KION-TV)- Starting January 1, the minimum wage will be $15.50 per hour for all employers.

KION checked in with Frank Savino, the owner of Aquablue Skin and Body Spa. Savino’s owned his business for almost two decades. Savino’s been preparing and planning for the wage increase. Small business loans during the pandemic and keeping extra money is what’s helped him.

“Our prices are pretty much in line. Some of the costs that's gone up is our back bar costs,” said Savino. “We run this place like a small family. We always make sure that we're taking care of employees first.”

The pandemic forced Savino to close for 11 months. Along with the closure of Main Street, that also impacted business.  

The longtime business owner told KION he's tried to stay ahead of the minimum wage to pull for a deeper talent pool. 

“For a company of this size, even though minimum wage is a dollar an hour less, we cannot pull from the talent pool unless we're matching what the large corporations are paying,” said Savino.

According to the state Department of Industrial Relations, the minimum wage for businesses with less than 25 employees is $14.00 per hour, while businesses with more than 26 employees pay $15.00 per hour. 

The Salinas Valley Chamber of Commerce said the wage hike would impact small businesses. Especially ones who didn't prepare or plan ahead. 

“It's those who haven't planned and those who aren't ready will be hit very hard,” said Steve McShane, the CEO and President for the Salinas Valley Chamber of Commerce. “This is a substantial increase to a bottom line that a lot of businesses might not be prepared for.”

The wage hike is a concern for two sectors: small business quick service restaurants and agriculture, that’s according to the Chamber of Commerce.

But Savino told KION his biggest concern about the wage hike is if people can afford to live on $15.50.

Savino said while it’s been challenging to find and keep people, he's always looking for workers to hire.

But what's helped him get more staff is job fairs hosted by the Workforce Development

2017 started the phase-in to reach the $15 minimum wage goal under SB 3. The governor signed that bill in 2016.