This is a tough one to tackle. I understand both sides and that is what sucks. The businesses that will be most harmed would be small businesses. The Targets, Ralphs, Best Buys, etc should be fine and should be able to pocket out the cost with no issues. I would instead have the increase be mandatory on bigger companies and have it be optional for small businesses.
The fact that Ralphs recently decided to close their LB branch because of this requirement is quite ridiculous. The tax cuts and the pandemic itself has led to higher than normal profits. It boggles my mind that these big companies are acting like $4/hour is going to kill their business.
