‘No room for growth now’
Child-care assistant Eunice Medina, 23, was thrilled when Oakland’s $12.25 minimum wage took effect in March. But almost as quickly, Medina’s workdays were cut and her hours shaved from eight to six.
Her employer, Asiya Jabbaar, says she had no choice. Despite slicing hours and laying off one of three assistants, Jabbaar says she still may need to close her business next year and convert it to a parttime after-school program.
It’s a big letdown for the 38-yearold Jabbaar, who launched Reaching Beyond Care in 2010.
Her experience illustrates what can happen to small employers when minimum wages jump suddenly. The effect on licensed or governmentregulated entities, such as Jabbaar’s, can be particularly sharp.
Because state law requires at least a 6-to-1 child-teacher staffing ratio for small home-based childcare providers, it’s difficult to respond to higher wage costs by simply trimming hours or staff. And Jabbaar voluntarily adheres to an even stricter ratio of 3 to 1.
So while Oakland’s new higher minimum wage may lure some stayat-home parents back into the labor force, the irony is that they may face higher prices and fewer options when searching for child care.
Jabbaar worries most about maintaining high-quality staff if she’s unable to offer steady pay raises. Before the wage hike, she started workers at $9, and every year bumped up their pay by a dollar or so, hoping to keep them satisfied and at their jobs until the next raise came around.
“There’s no room for growth now,” Jabbaar said on a recent morning as she cared for three 2½-yearolds. “It wouldn’t be fair to keep [workers] at $12.25. They’re at that cap.”