Small businesses in Colorado Springs brace for minimum wage increase

COLORADO SPRINGS, Colo. (KRDO) -- Come January 1, the state-mandated minimum wage in Colorado will increase from $11.10 per hour to $12.00 per hour.

Some owners of small businesses in Colorado Springs say they have a hard time absorbing these kinds of cost increases.

Steve Kelnhofer says this hike is going to get passed on to his customers. He's the owner of Elev8 Glass, which sells glassware for smoking and vaping.

By paying their employees more, they're going to have to make up for that loss by charging more for their products.

Kelnhofer calls it a "vicious cycle" that doesn't actually benefit those working for bottom wages.

"I have to raise my prices if I want to keep the same profit margin", says Kelnhofer. "Then when [customers] come in, things are too expensive, so therefore even if you are getting minimum wage, now your spending power is the same".

Workers, however, say this increase is badly needed.

Ian Armstrong, an employee of Elev8 Glass, says the 90-cent increase makes a huge difference.

"The last job I had was just federal minimum wage - so it's a huge increase from an employee's perspective," says Armstrong.

Colorado is one of 24 states raising their minimum wage on New Year's Day.