July 12, 2012
Industry support needed for campaign to defeat San Jose minimum wage initiative
In November, voters in San Jose will decide whether to approve or reject an initiative to increase the minimum wage by $2 per hour to $10 per hour beginning in January 2013 and automatically increases the minimum wage every year to adjust for inflation. The ramifications for the restaurant industry will be significant, forcing restaurateurs to make operational decisions, such as cutting back employee hours, laying off employees, raising prices or closing.
Here is a glimpse at the potential added costs to an operator:
| Employees making minimum wage | Hours worked per employee per week | Total additional annual cost |
|---|---|---|
| 1 | 20 | $2,080 |
| 10 | 20 | $20,800 |
| 25 | 20 | $52,000 |
| 50 | 20 | $104,000 |
| 75 | 20 | $156,000 |
| 100 | 20 | $208,000 |
| 150 | 20 | $312,000 |
| 1 | 30 | $3,120 |
| 10 | 30 | $31,200 |
| 25 | 30 | $78,000 |
| 50 | 30 | $156,000 |
| 75 | 30 | $234,000 |
| 100 | 30 | $312,000 |
| 150 | 30 | $468,000 |
If voters in San Jose approve the measure it will only be a matter of time for other local jurisdictions to see similar proposals surface either through the legislative or initiative process.
A coalition has been formed by the California Restaurant Association and the San Jose Silicon Valley Chamber of Commerce to help educate voters about the proposal. Efforts to raise the minimum wage at the local level have been defeated at the ballot box in Santa Monica and Santa Cruz. With a well-funded campaign we have the potential to defeat the initiative.
This is the type of issue that the CRA IPAC engages in. Consider making a contribution to the CRA IPAC today. Contributions to the CRA IPAC are voluntary and not deductible for federal or state tax purposes. An investment into this effort will be less costly than what you would pay in ongoing wages cost.
For more information, contact Javier González, CRA’s director of local government affairs, at jgonzalez@calrest.org or 408.416.6344.