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Voters OK minimum wage increase ó now what?

Voters passed Amendment 70, the ìColorado $12 Minimum Wage Amendment,î in November by a 55.3 percent majority. The new law raises the Colorado minimum wage from the current $8.31 per hour for most industries to $9.30 per hour on Jan. 1. Each year, the minimum wage will increase by 90 cents until it reaches $12 per hour in 2020. After that, the wage will continue to increase by cost-of-living statistics.ìAt the end of the day, we finished with 55 percent and we’re happy with that,î said Debra Brown, campaign manager for Colorado Business for a Fair Minimum Wage. ìWe’re also thrilled that over 300 businesses endorsed Amendment 70 by the end of the campaign.îOpponents to Amendment 70 say that customers of those businesses will face higher prices. ìIt’s a given that prices will increase, but they’re struggling with how much can they raise without turning customers away,î said Sonia Riggs, president and CEO of the Colorado Restaurant Association. ìThey’ll have to look at that every year; 89 percent of our members said they will increase prices.ìBusinesses are looking at cutting positions. The bussers and runners may be first to go, and the servers will have larger stations and more tables. Because of that, customer service may be slower. Restaurants don’t want that to happen, but that may be a result.îWorkers who also receive tips will be increasing their hourly wage portion of their income from $5.29 per hour to $8.98 by 2020. ìA full-service restaurant will be affected more than other businesses because of the tipped positions,î Riggs said. ìSixty-five percent are front-of-house employees that rely on tips, and those positions will be particularly impacted because the tipped employee wage will be going up by 70 percent over the next three years. That’s a major hit, and has to come from somewhere.îSupporters of the minimum wage increase point to statistics after the 2006 Initiative 42 Colorado minimum wage increase to say that these fears are unfounded. ìWe’re going to watch the industries that our opposition said would be hurt, to show that just like in 2006 they’ll actually be benefited,î Brown said.

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