AUSTIN, Texas --  It takes heavy machinery to make the sweets from Sweetish Hill bakery from scratch. But owner Jim Murphy says the real assets are his 30 or so employees. 

“Everything else I can replace," Murphy said. I can get another mixer, another oven, but employees are hard to come by, good employees.” 

For years, employees have gotten accrued vacation days, a 401(k) plan, and disability benefits when they are sick or injured. Now, they get to earn even more.

RELATED STORY: Austin passes first mandatory paid sick leave in Texas

The City’s paid sick leave mandate is set to go into effect Oct. 1. Austin is the first in the South with an ordinance like this. Employees will now be able to receive up to eight paid sick days, earning an hour for every 30 hours worked. Companies with five or fewer employees are exempt.

Murphy feels he is already stacked up against big name brands and the rising costs of living in Austin. He wanted to spend $100,000 on renovations, but is reconsidering. 

"I pay property taxes that are 10 times what they were 20 years ago on the property, and yet my employee salaries haven’t gone up 10 times. My prices certainly haven't," Murphy said. “I’m already paying a huge amount of money into property taxes and to throw this on top of that it makes it hard.”

Wheatsville Co-op employees already get paid sick days, but Chief Executive Grocer Dan Gillote said he believes the ordinance is for the thousands of Austin workers who don’t.

“The City can’t just count on people doing it, out of the goodness of their hearts," Gillotte said. "You kind of do need rules to establish these kinds of important public health things.” 

Whether proprieters think the the City Council's compromise is unfair or manageable, there may be one thing small businesses can agree on. 

“When you shop local, you're supporting those businesses in being able to pay the benefits that people deserve,” Gillote said.  

“You spend your money here, it stays here,” Murphy said.  

The City Council passed the motion, last Friday, by a 9 to 2 vote.  Some state law makers want to overturn the ordinance during the next legislative session.