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Posted on 08-25-2014
Minimum Wage Affects Senior Care
This year in both January and July we raised the rates we charge to families for our services, reflecting our increased labor costs associated with AB241 legislation in January and the statewide increase in minimum wage in July. As we raised our rates, I spoke with many families who expressed their inability to afford the rising costs of care. Inability to afford care means seniors at risk, seniors moving out of their homes, and Caregivers losing their jobs. This year increased labor costs have significantly affected our clients and our business.
As you likely are aware, last Monday the San Diego City Council approved an increase in the San Diego minimum wage in steps that will reach $11.50 in January 2017, rising from the $8 per hour in place just two months ago. This will effectively increase the minimum wage in San Diego 44% in less than 3 years. When minimum wages increase, we must increase the rates we pay to Caregivers to continue to attract the appropriate talent for our clients.
A couple media outlets picked up some comments on the topic I made last week:
I’m not making a general case for or against minimum wage. I commented to the media last week and am sending this email because from my experience in senior care, I can say that the increased minimum wage enacted by the City Council will hurt our clients, will hurt our business, and will hurt the Caregivers who lose their jobs. If you have any questions about our experience with creating these jobs, my opinion on the matter, or about the referendum, I will be happy to answer from what I know.
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