Reactions from outraged community members came swiftly last week after word surfaced that some local businesses would potentially decrease wages.

That possibility came after Gov. Terry Branstad signed a bill blocking cities and counties from setting their own minimum wages at levels higher than the state minimum of $7.25, the same as the federal minimum wage.

Criticism of the local businesses Formosa, El Patron, and Takanami circulated through social media after the law’s passage. The restaurants, owned by the Etre Restaurant Group, were thought to be decreasing wages for certain employees. The owner confirmed earlier this week that this would not be the case, and the current wage structure would remain intact.

“After meeting with our staff, community members, and customers  … we have decided to keep our tipped wait-staff wages the same,” the group said on Facebook. “Even though the state of Iowa tipped employee minimum wage is $4.35 [plus tips] per hour, all of our tipped wait-staff employees will remain at OR ABOVE $6.06 [plus tips] per hour. Also, all of our non-tipped employees will remain well above minimum wage, with no one making less then $11 per hour.”

George Etre, the owner of the Etre Restaurant Group, said after thinking about the impact it would have on staff and the community, the best course of action would be to maintain current wages to show unity among the community.

“Minimum wage for like dishwashers, and cooks, and kitchen staff, I think they’ll want to keep competitive,” he said. “Nobody could lower that. I think it’s way above industry standard in Iowa City.”

Etre said he mentioned to staff decreasing wages would be a possibility, but nothing had been confirmed, and he couldn’t justify lowering wages.

“Iowa City is a small town, and rumors and things can spread very fast and misinformation,” he said.

Nikolai Qual, a supervisor at Hamburg Inn No. 2, said that even before the law passed, the general manager discussed with managers not reducing employees’ pay because it was accounted for in the budget, and the business had recently raised pay for employees.

Additionally, Qual said there is a sign in the window saying the business supports the Johnson County wage of $10.10. He thinks businesses should continue using the signs to communicate their stances on the minimum-wage rollback.

“I think that’s probably the best way to get the word out, because people see that when they’re going in and out of the business,” he said. “I think that’s reassuring for local Johnson County residents, that these businesses are supporting their workforce and employees.”

UI student Brice Fowler,  who works at Jimmy Jack’s Rib Shack, said not lowering the minimum wage had to do with Iowa City’s culture.

“I feel like Iowa City has kind of got its own culture around this, so the stuff you see that’s opened up in Iowa City, like your individualized restaurants, wouldn’t necessarily drop their wages right away,” he said. “That’s what their workers are there for, that kind of pay, and they’re good workers.”

Given that the law just passed last week, Etre said, local business owners will have to examine their financial status and reach their own decisions regarding how to best handle having the ability to decrease wages for tipped servers, but he imagines it is a possibility.

“It’s extremely difficult in today’s economic time for small businesses to survive,” he said. “… I know that there are a lot of places downtown that are having a tough time making it.”