BRISTOL, Va (WCYB) — For hourly wage employees, a raise can make a big difference, but for some small business owners, higher wages mean higher costs.
This will directly affect the consumers. I have no choice but to raise my price to cover this inflation, said Deel.
Under the legislation, Virginia’s current minimum wage of $12.77 an hour would increase to $13.75 in January 2027 and then to $15 an hour by January 1, 2028.
Owner of Gio’s Candy & More, Jose Montes, tells News 5’s Yannia Nordelo that higher wages could help families keep up with rising costs.
Now the prices are getting so high, and people are still getting paid so little that they could balance each other out. I know rent and other stuff will go up because people are making more money, but we can see it in a small business perspective, said Montes. I used to be working class, like I get it, making $12 an hour sometimes just wasn’t enough, so I fully understand.
Owner of Burger Bar Joe Deel says he’s worried about what the increase could mean for small businesses already operating on tight margins.
This is the kind of thing that really hampers a business like mine to the point where I’m not sure if I can make it over these hurdles. It’s hard enough to find labor as it is now, I’m going to have to pay more, said Deel.
He says the added expense could lead to higher prices for customers or fewer job opportunities, especially in rural communities.
Everyone who’s already working and established is actually going down on the payroll, as these people walk in the door, they can maybe even make more money than they’re making, said Deel.
State leaders say the phased-in approach is designed to give businesses time to adjust. However, Deel says it’s not about adjusting, it’s about making it possible for businesses.
I only have two choices. I can either raise my prices or cut people. That’s the only two ways that I can do this, said Deel. I want to pay. It’s not that I don’t want to pay a higher wage. I want my people to make good money. It’s just it’s it’s got to work in the numbers.
