Minimum wage effect on local business

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Updated: 1/29 2:03 pm
RENO, Nev. (Mynews4.com & KRNV) -- A big focus of President Obama's plans on moving forward has to do with the minimum wage.

Last night, he announced that he would sign an executive order to raise the minimum wage for new federal contracts to $10.10 per hour. He is hoping this order will put more pressure on Congress to do the same across the country.

So, how would such a raise affect business? Bibo Coffee Company Owner Paul Martin said if all employees in the store were paid just over $10/hour, it would raise coffee prices just a little. He estimated an average of about $.05 per coffee.

But overall, Martin thinks the increase in the minimum wage would be beneficial. "Long-term, it would raise our client base, almost exponentially. We are a guilty pleasure, so to pay people a living wage, where they might have a few extra bucks, I think it would be great for business."

Currently, the Silver State has a minimum wage that is $1 above the federal minimum wage of $7.25/hour.
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freedomrings - 1/30/2014 12:15 PM
0 Votes
if you can't afford to pay your loyal employees a decent living wage you shouldn't be in business in the first place. customers shouldn't have to tip workers either for lack of pay by their employers.

Kramer - 1/29/2014 4:32 PM
0 Votes
counter that tired Chamber argument with actual economics: higher minimum wages are pumped right back into the economy as real folks spend on rent, utilities, food, gas, etc. Not on stock trades (could be taxed .05%), cruises, or Hummers for the lawnmower.

Paladin - 1/29/2014 3:37 PM
3 Votes
Putting the MW over $10 an hour will do nothing but drive up retail costs and put people out of work. As a businessman, if I have X amount of $ in additional payroll costs, I have to get it from somewhere. It either comes in by passing it on to the consumer in increased costs or by laying off employees and making those left pick up the work. This is economics 101! Why can't the demo understand that. Actually, I know. Because in today's world democrat=income redistribution=socialism.
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