San Francisco’s Minimum Wage Increase Takes Effect

San Francisco’s minimum wage hike goes into effect today, bringing the hourly rate to $8.50 from $6.75.

City voters approved the increase in November, despite grumblings from businesses, many of them restaurants, that the measure would drive them out.

“The individual [business] at this point really needs to be looking at creative ways of coming into compliance,” said attorney Jeffrey Tanenbaum, who represents employers in employment and labor relations litigation.

Tanenbaum said businesses can shift schedules to reduce overtime pay or reclassify employees so that they qualify for less pay.

Restaurants also have made preparations for the change.

Some have said they will raise menu prices to offset their costs. Others plan to reduce pay for busboys and dishwashers who now earn more than the minimum wage.