UC Berkeley report finds higher wages may not lead to business closures

Photo of "We are Closed" sign
Joe Sison/Staff
A federal subminimum wage allows businesses where workers receive tips to pay the same workers less than the federal minimum wage. However, a study from the UC Berkeley Food Labor Research Center and One Fair Wage found that businesses in states without the federal subminimum wage experience similar levels of decline.

The UC Berkeley Food Labor Research Center and One Fair Wage, or OFW, released a report analyzing how a higher minimum wage impacts the ability of small businesses and restaurants to stay open during the pandemic.
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