New Study Shows California Lost Thousands Of Fast Food Jobs After New Minimum Wage Law Went Into Effect

 Steve Straub - TFPP Wire

As with Harris and Biden, these people have never had to meet a payroll or run a business, so this is what we get. TD

"California’s fast-food industry is feeling the effects of Gov. Gavin Newsom’s new $20 minimum wage law, with a reported net loss of over 5,400 jobs since January, according to a new report from the California Globe. While Newsom insists this wage hike is “modest” and manageable, critics argue it is crippling the fast food sector. The impact has already been felt in layoffs, restaurant closures, and reductions in staff hours. Despite the negative press, Newsom remains firm, even dismissing job loss claims as media-driven exaggerations.

Key Facts:

– California’s fast-food industry has lost over 5,400 jobs since the wage hike took effect.
– The minimum wage increase, mandated by Assembly Bill 1228, represents a 25% raise to $20 per hour.
– Neighboring states, such as Nevada and Oregon, have seen job gains in fast food during the same period.
– 74% of California fast-food restaurant owners reported a higher likelihood of closing their businesses.
– Many fast-food chains have resorted to layoffs and price hikes to cope with the new labor costs.

The Rest of The Story:

"California’s fast-food industry has been struggling since the state implemented a mandatory $20 per hour minimum wage in early 2024, spurred by Assembly Bill 1228. The law, which represents a 25% wage hike, was initially heralded by Gov. Newsom as a necessary step to support low-income workers. However, the consequences have been severe, with over 5,400 fast-food jobs lost since the law took effect. Businesses have been quick to respond with layoffs, store closures, and reduced employee hours.

"Rebekah Paxton, the research director at the Employment Policies Institute, explained that California’s fast-food job losses stand in stark contrast to neighboring states like Nevada and Oregon, where fast-food jobs have continued to grow. She also highlighted that this is the worst job growth rate in the industry since the Great Recession.

"In the months following the wage hike, some businesses have had no choice but to shut down. Pizza Hut alone laid off over 1,200 drivers and shifted deliveries to third-party services such as DoorDash and Uber Eats. Even Rubio’s Coastal Grill, a beloved Mexican food chain, shuttered 48 stores across California due to rising operational costs, including wages." . . .