PHOENIX - The pay raise is in full effect for some Arizona minimum-wage workers who went from earning $8.05 to $10 per hour with the coming of the new year.

Proposition 206 went into effect on Jan. 1 after being passed by voters in November.

The changes are already being felt and, depending on who you ask, it's both positive and negative.

One Flagstaff establishment, Cultured Cafe, announced in a Facebook post that it is closing its doors. After thanking customers for their loyalty, the owners said they couldn't afford to pay what the new law demands.

Some local businesses argued the increase would force them to close, fire employees or pass on the cost to customers, which is what Jacob Meltzer had to do.

Meltzer has co-owner of Keep It Cut, a men's barber shop with three Valley locations. Customers are being handed a letter explaining the reason for the price hikes, something he says most customers have understood.

"The goal with the letter was just to make sure our clients know why we're making the changes," he said. "We felt like being visible with these prices changes and (saying) 'Here's where that money is going,' helps them understand and be supportive of that."

The workers at his locations all 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."