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A new California law championed by Gov. Gavin Newsom boosted the hourly wage for fast food workers from $16 to $20 an hour. The law took effect on April 1, 2024. It didn’t take long for fast-food restaurants across the state to feel the impact on their bottom line. Many have been forced to lay off employees, cut hours, and increase prices to offset the state’s new wage requirement.
Jot Condie, president and CEO of the California Restaurant Association, told the Associated Press, “When labor costs jump more than 25 percent overnight, any restaurant business with already-thin margins will be forced to reduce expenses elsewhere.” While many “fair-minded progressives” like Simone Barron may think a higher minimum wage is an overall good for workers and society, the reality is starkly different. Its detrimental effects often outweigh any potential benefit.
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