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As an employer myself I have seen this play out many times when it comes to COLA and minimum wage increases. Minimum wage goes up to $15 in LA? Now suddenly all our employees was a big raise, even though they already make more than $15. They want to keep the same relative distance from minimum wage as they had before. Cost of living and rent keeps going up? People again are looking for big raises.
The issue is, as a company we don't make more money just because rent went up for employees or because Los Angeles signs a new minimum wage bill. The market is fiercely competitive for us and we don't have the option of just raising prices to cover high payroll. We do have the ability to raise ones pay if they are able to produce more for the company however.
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