Impact of $20-per-hour Minimum Wage Law on California Restaurants

SOURCE www.breitbart.com
California restaurants are laying off workers ahead of a new $20-per-hour minimum wage law taking effect in the fast food industry in April. Proponents believe the law will improve the lives of local workers, while critics argue it may lead to job cuts and reduced hours.

Key Points

  • California is set to raise the minimum wage by 25 percent to $20 per hour, effective April 1.
  • Many businesses in the restaurant industry have been negatively impacted by municipal hikes in minimum wage laws across the country.
  • California's unemployment rate is the nation's highest, reaching 5.3% in February.

Pros

  • The new minimum wage law may improve the lives of hundreds of thousands of local workers.
  • Organized labor groups hope to replicate the law in other states.

Cons

  • California restaurants, particularly pizza joints, have outlined plans to cut hundreds of jobs in the months leading up to the April 1 wage mandate.
  • The negative effects of raising the minimum wage are often felt in the restaurant industry, where margins are typically small.