Minimum wage increase brings mixed reactions from workers, business owners

PALM DESERT, Calif. (KESQ) - The new year is here with a pay raise for minimum wage workers in California.

The state's minimum wage has increased by 40 cents to $16.90 per hour. The annual increase is primarily due to a state law requiring annual adjustments for inflation, ensuring wages keep pace with the rising cost of living.

Some local workers say the increase comes at a much-needed time, as everyday expenses remains high, though acknowledge it still falls short.

“In reality, it’s not enough. I think it’s a step forward, a small one at least, to help us," admits Nataly Sanchez, an employee at Casa Luna Mexican & Seafood Restaurant.

Business owners, however, say they are already in a tough spot and that the increase adds to their current financial strain. As a result, it could force some to make tough choices to make ends meet.

Jose "Pepe" de la Torre, owner of Casa Luna Mexican & Seafood Restaurant, says, "It hurts us because high costs are in everything, food, rent — everything. So, of course, it’s really affecting us." He adds, "When we hear that, we start thinking of what we should do — what kind of changes we should do so we can continue to operate.”

While workers and business owners view the increase differently, both say they hope the higher wage ultimately brings more benefits than challenges in the year ahead.

Stay with News Channel 3 for more.