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What did you think would happen? Restaurants in California laying off people. Come April 1st, the restaurant minimum wage goes up to $20.00 an hour. Just last year state minimum went to $16.00 an hour.
Yes this is for large chain restaurants, but it effects small business outside of the restaurant industry. Folks will demand the same $20.00 an hour. How are the large chains reacting? Higher prices, layoffs, and reduced hours. There is a group fighting this.
The “Save Local Restaurants” coalition has been vocal in its opposition to the FAST Recovery Act in California. This law, which could set the fast food minimum wage as high as $22 an hour next year, has drawn criticism from the fast-food industry. The coalition includes a mix of stakeholders, such as small business owners, restaurant owners, franchisees, employees, consumers, and community-based organizations. Notable contributors to this coalition include Burger King, McDonald’s, and KFC owner Yum Brands. They argue that the law unfairly targets their industry and could lead to higher labor costs and menu price increases. In response to the Act’s passage, the coalition filed a voter referendum seeking to repeal the legislation2. The legislation applies to fast food restaurants with more than 100 locations nationwide.
The FAST Recovery Act aims to establish sectorwide minimum standards on wages, working hours, and other working conditions related to the health, safety, and welfare of fast food restaurant workers. Labor unions pushed for the creation of a Fast Food Council to address the challenges faced by fast food workers, who are often part of a disempowered workforce with a history of low wages and limited worker protections.
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