The minimum pay rise is in full effect from new year for some Arizona workers, who’s minimum wage per hour was increased to $10 from $8.05.

Proposition 206 came into effect from 1st January 2017, after voters passed the proposition in November.

The changes are already being felt and, it depends upon who you ask, the effect is both positive and negative.

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One Flagstaff establishment and Cultured Cafe, announced in a Facebook post that it is going  to close its doors. After thanking their customers for loyalty they have showed, Both business owners said they could not afford to pay what the new law demands.

Before the hike, some local businesses were arguing that the wage increase would force them to close, fire some employees or pass on the cost to the customers, which is what Jacob Meltzer had done.

Jacob Meltzer has a co-owner of ‘Keep It Cut’, it is a men barber shop with three Valley locations. The Customers are being handed over a note explaining the reason why they have hiked the price, most customers had understood the problem.

"The goal of handing over note’s was just to make sure that our clients know why we are making these changes," Meltzer said. "We felt like being visible with these price changes and 'Here's where that money is going,' helps them understand and be supportive of that."

The workers at his all three locations earn more than the new minimum wage, but Meltzer explained that the industry as a whole can be challenging when it comes to fair compensation and employee benefits. Prop 206 helped spur a discussion of what could be done to help support his employees, he said.

"I think, here, we are going to stay even," Meltzer said. "I think our clients are very supportive. I'm hoping that just explaining why we're doing it, they can see that we're a local business that's committed not only to high quality for our clients, but also committed to our staff, we take care of them."

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AMandeep