The local business is called Little Mushroom Catering, which is based out of Cambridge.
Stephanie Soulis, the President and CEO of the company committed to becoming a living wage employer almost two years ago.
She told The Mike Farwell Show on 570 NEWS why she made the change.
"We really focus on our employees mental health at Little Mushroom, part of having a living wage means that you know that you are going to have enough money to provide for yourself and for your family, if you have family to provide for. That's really core to having good mental health."
All 43 employees at Little Mushroom Catering make at least $16.50 an hour.
As a result of this change to living wage, Soulis takes a pay decrease, but she says it is worth it.
"What's been fantastic for our bottom line is that my staff stay longer, I am able to attract better quality staff. I am able to both attract and retain good staff in an industry that is known for turn over."
She explained what the reaction has been to the living wage.
"It's been very positive even with my senior staff. What it means is that the gap between the lowest paid and the highest paid employee is much smaller then in some other restaurants or other businesses in general. It also means there is more teamwork and more comradery."
Soulis became a living wage employer through Living Wage Waterloo Region. She then made a promise and committment to provide her employees with a living wage and to seek parternship with other businesses and suppliers that are also living wage employers.