FAYETTEVILLE, Ark. (KNWA/KFTA) – Many businesses are already having a tough time financially due to the pandemic but might face even more trials at the start of the new year.

According to the Arkansas Department of Labor, minimum wage will increase by $1 from $10 to $11 per hour on January 1st, 2021. This comes after Arkansas voted this into law in 2018. That increase first went into effect in 2019.

Natural State Smoothies co-owner, Jamie Thornton said business has struggled since the pandemic began and this $1 increase may be its tipping point.

“We definitely didn’t have the foresight when we voted this bill into law two years ago,” Thornton said. “We opened our first smoothie business in 2009 during the recession and we thought that was tough… that has nothing on what we’re going through now.”