The Employment Policies Institute released a report Thursday showing many Oakland businesses have scaled back operations in response to the recent minimum wage hike.
According to the report, titled “Examining the Costs of the City of Oakland’s $12.25 Minimum Wage,” many local businesses have reported adverse effects as a result of the wage hike which came into effect at the beginning of March. Of the 223 mostly small Oakland businesses asked about the new minimum wage, 56% said they had experienced a devastating increase in labor costs. This has resulted in many businesses having to reduce hours for employees, cut staffing levels, raise prices, or delaying plans to expand within the city.
“The surveyed businesses were not all able to estimate the percentage increase in their labor costs,” the report detailed. “However, of the 163 businesses that were able to estimate the percentage increase, roughly half reported a labor cost jump of more than 10 percent. Nearly one in four reported a labor cost increase of more than 20 percent.”
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