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California's Minimum Wage Backfire
• Wall Street JournalThe $20 fast-food mandate is harming workers and business.
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The $20 fast-food mandate is harming workers and business.
Nearly 10,000 California fast food workers have been fired thanks to the state's new $20 minimum wage, according to the California Business and Industrial Alliance (CABIA), which slammed Governor Gavin Newsom for the law which went into effect April
"Feedback from our members suggests this has become a breaking point for many small restaurant businesses."
Blue states that implemented minimum wage hikes are seeing a drastic rise in food prices.
This year, 22 states are raising their minimum wage, impacting almost 10 million workers across the country.
Minimum wage increase forcing restaurants to pass operating costs onto consumer.
The minimum wage outlaws jobs. The only question is which jobs are outlawed. In California, any job that can be done for less than $20 are illegal in fast food chains. Naturally, prices for consumers will go up, workers are laid off (thanks to a law!
'I can't charge $20 for a Happy Meal': McDonald's franchisee responds to California's new fast-food worker wages
This result shouldn't surprise anyone. Inflation has driven up operational costs for businesses across the US and shrunk profit margins for major food chains in the past few years.
I wish we could call "April fool!" on the $20 minimum wage hitting California fast-food restaurants on April 1. But the wage hike signed into law last September by Gov. Gavin Newsom is really going to hit hard.
California restaurants are reportedly laying off staff and reducing hours for other team members in an effort to cut costs ahead of a California state law taking effect on April 1 that will raise fast-food workers' hourly wage to $20.
Multiple Pizza Hut franchises in California, collectively operating hundreds of stores, are laying off 1,200 in-house delivery drivers ahead of a new law taking effect in April that raises wages to $20 per hour