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Minimum Wage

April 6, 2016

California is going from $10 ti $15 per hour.  Let’s play with these numbers for a bit.  The business owner’s cost include the hourly rate paid, plus social security tax, workman’s compensation, and unemployment compensation.  Social security is 7.65 %, and the other two at 3 % each brings the current $10 labor cost to $11.36 per hour.  At $15, the cost is $17.04.  That brings the hourly rate raise costs to $5.68.  For a full time employee (2080 hours per year), that bring the cost to $11,814.40 per year. If there are 30 full time employees in a fast food joint, the employers addition cost for labor comes to $354, 432.00 per year.  In this small town,we have 9 restaurants  that can fall into this catagory.  It isn’t a question of which one will close, but how many..