Proposition 206 has brought plenty of change to Arizona as it increased wages immediately to $10 last month, and will also see this number gradually increase to $12 incrementally across the next three years on Jan. 1. This is coming up significantly from the state’s previous minimum wage of $8.05 an hour.

While Arizona has been seeing plenty of recent business positives, proposition 206 is introducing new problems, especially concentrated on small business owners.

From the beginning it was clear the impact on larger businesses would be negligible in comparison to the potential negatives of the major change on small businesses, because Proposition 206 also brought more than just wage increases.

Proposition 206 also includes mandatory paid sick days for employees, another hit especially noticeable in local small businesses.

Tempe’s Chamber of Commerce Director of Communications Christopher Samuels said of the effects, “Proposition 206 is not stopping any new people from opening businesses.” The real effects are most immediate in smaller existing businesses as they have to reduce staff and hours in response to the greater costs.

The long term economic effects of a higher minimum wage remains to be seen, but as it stands while many prepared for the changes, many are still being surprised by the difference.