At the start of this month, California put into effect a new minimum wage for fast food workers. The law demands restaurants pay low-skilled workers a whopping $20 an hour. This dwarfs recent demands by workers that the minimum wage be raised to $15 an hour.
Members of a fast food workers union celebrated the law by holding a rally. They intended to “inform” fast food workers of the change, educating them on their rights.
However, many companies warned that this government-mandated change will have devastating consequences. Despite this, Democrat lawmakers went ahead with the move. Right after the law went into effect, workers were shocked when they arrived at their restaurant.
From Breitbart:
Restaurant workers at a Foster’s Freeze location in California arrived at work this week to find they had lost their jobs because it had closed, thanks to a $20 minimum wage signed by Gov. Gavin Newsom (D) that took effect April 1…The assistant general manager, Monica Navarro, told Action News it was because of the wage increase, saying the owner told her he could not afford the new salaries.
Some of the employees thought it was an April Fool’s Day joke.
No, this is no joke. This is what happens when aggressive, big-government policies are forced onto private businesses. Democrats, including Gov. Newsom, seemed to assume that big corporations could afford the new wage hike.
It seemed to have escaped their notice that many fast-food restaurants are owned by local residents or small businesses. Corporate offices aren’t paying salaries. In fact, local owners pay the companies for the right to use their name. They are stretched thin trying to provide food, accommodations, and benefits.
Hiking the wage up any higher would mean many restaurant owners will not be able to make ends meet. For one restaurant, it couldn’t afford to stay open one day.
California lawmakers would have no doubt heard pleas from business owners not to pass this law. But they did it anyway, heedless of the dangers. This new law will result in many layoffs, not to mention higher prices for consumers.
Already California has some of the highest costs of living than most states. Jobs are bleeding as businesses flee the hostile state. How many more will leave, now that this law is in effect?
Key Takeaways:
- Workers arrived at their restaurant to discover it was closed.
- All the employees were fired because of the new California wage hike.
- A new law forced all fast-food restaurants to increase wages to $20 an hour.
Source: Breitbart
