Staff Reports
The liberal lawmakers in California have once again made things harder for the people they said they were trying to help, this time with a law that’s causing thousands of minimum wage workers to lose their jobs. This law, known as Assembly Bill 1228, requires certain fast-food restaurants to raise their minimum wage by up to $4 an hour all at once. As a result, many businesses have had to respond by implementing electronic ordering systems and letting go of human employees.
Recently, California’s new $20-per-hour minimum wage went into effect for the fast-food industry. Unfortunately, this has led to job losses for many workers. The COVID-19 shutdowns further devastated the restaurant industry, decreasing profit margins. As restaurants in California were starting to recover, the legislature imposed this new wage law, adding to the burden on business owners.
Liberal Utopia: New California Law Could Terminate Up to 500,000 Jobs via @gatewaypundit https://t.co/C7OWJaRTyI
— The Gateway Pundit (@gatewaypundit) April 25, 2024
One Burger King franchise owner, Harsh Ghai, explained that the new wage law has forced him to install electronic ordering kiosks at his 140 locations within just two months. Prices at fast-food establishments have already increased by 8 to 10 percent in the past year, a much larger jump than usual. With the rising costs the state is imposing on restaurants, the majority of these price increases will likely go towards covering food costs, rather than compensating for the increased labor costs brought about by the legislation.
Ghai also noted that the higher prices and staffing costs are driving customers away, leading many businesses to cut employees. This has prompted numerous restaurant chains to dismiss hundreds of workers, while others have closed down entirely. Some are exploring the possibility of opening locations with no dining area and no cashiers, with customers ordering exclusively online or via an app and picking up their orders at a drive-through.
In conclusion, the left-wing legislature in California’s actions have resulted in increased prices for fast-food customers and the loss of tens of thousands of jobs. This has had the opposite effect of what was intended. If such policies continue, the ramifications for the state’s economy and workforce could be severe.
