Minimum wage increases seem like a great idea unequivocally. But are they truly good for small businesses in all sectors?
Dylan Hull, owner and CEO of Select Home Care, a California-based company that provides private non-medical care to seniors, says no: “I want to be able to pay people more. I really do. But realistically, it’s driving costs up to the point that many senior citizens just cannot afford to have a private caregiver at home anymore.”
Select Home Care opened in 2005. Three years ago, Hull says that a private full-time caregiver would have cost $6,000 a month. Now, it’s in excess of $15,000 a month, making it an elusive reality for most seniors.
What’s causing the price increase, aside from just inflation?
Hourly wages have increased from $8 to $10 (and are on path to go up to $15). In addition, the state passed new legislation requiring caregivers to be paid for sleep time. “That means while the caregiver is sleeping at the residence, you’re paying for him or her,” he says.
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