San Francisco’s minimum wage now the highest in the country

San Francisco made history this week by becoming the city with the highest minimum wage in the country, which is good news for workers but some employers said it is another price to pay for doing business in the city. 

The 32-cent hike put San Francisco as the first city in the country to pay minimum wage workers more than $10 an hour.

San Francisco's minimum wage is tied to the cost of living. The change will add a few dollars to the paychecks of about 20,000 workers. It’s not enough to change lives, but it could boost morale among workers.

Nicole Walsh, a baker at Mission Pies, said it's a struggle to survive on less than $10 dollars an hour, especially in one most expensive cities in the country. Mission Pie pays above minimum wage.

“It's really hard for people in the restaurant industry to get raises if you haven't worked there for a year,” Walsh said. “They started me at $13 dollars an hour which was nuts. It's incredible.”

Mission Pie is able to stay profitable, but other San Francisco employers said breaking the $10 barrier may break them.

Peter Gil helps his family manage 20 employees at their three grocery stores. He said he worries that if business sours, he won't be able to afford to pay the higher wages and that could lead to layoffs.

 “The companies aren't going to lower their prices just because the employees have higher wages, right?” Gil said. “And consumers aren't going to come and expect a little higher prices just because they earn a little bit more.”

Employers said paying the highest minimum wage isn't their only complaint.

San Francisco is the only city in the country that requires a 1.5 percent payroll tax and nine paid sick days per employee -- benefits that can over burden businesses already struggling to stay afloat.