On New Year’s Day, Seattle’s minimum wage is jumping up to more than $20 per hour, and for some local small business owners, that is too much of a change to keep their doors open.

Minimum wage in the city will rise to $20.76 per hour beginning midnight on New Year’s Day, one of the highest rates in the country. For the first time since Seattle’s minimum wage ordinance took effect almost a decade ago, all employers will be subject to the same pay floor.

While the minimum wage jump in Seattle is good news for workers, businesses are now evaluating what it means for them.

Customers may need to prepare for higher prices in the new year as restaurant owners brace for a minimum wage increase and the expiration of the tip credit.