Another California small business and its employees appear to be suffering from the state’s new $20 minimum wage.
“I’m shocked,” Monica Navarro, former assistant general manager at Foster’s Freeze in Lemoore, said Wednesday on “The Bottom Line.”
“It would have been nice to have been notified so I could go and pick up my application.” [out], I was able to prepare them,” she continued. “The best thing I can do is honestly give them some references.”
As Navarro and his team headed to work Monday morning, they learned immediately upon arrival that the restaurant’s owner had decided to close.
Owner Lauren Wright told local Fox affiliate KMPH that this was “the last thing” they wanted to do, but by Friday night, the business likely wouldn’t be able to absorb the wage increase and was “going bankrupt.” “I didn’t want to let that happen,” he said. It’s their Easter Sunday. ”
A new California-wide law goes into effect Monday that imposes a $20 minimum wage on restaurants with at least 60 locations nationwide, excluding those that make and sell their own bread.
“Two of my co-workers were actually scheduled to work that morning, and right after that we got the call that we were closing. So they found out right away as they were going to work that day,” Navarro said. I reminisced.
One of Navarro’s co-workers also told KMPH, “I got a message in the group chat saying it was shutting down, and I thought it was a complete April Fool’s joke.”
After further discussions with management and the owner of Foster’s Freeze, Navarro learned that minimum wage laws were a major factor in the restaurant’s demise.
“He blamed it on the minimum wage increase. However, my understanding is that we were exempt due to the amount of places he personally owns. But… He ultimately blamed it for the increase,” she said.
The former administrator added, “I understand what they’re trying to do, thinking that if they raise the minimum wage, more people will come.” “But honestly, I don’t think it’s going to work out. This isn’t the first time it’s closed. Several local businesses have already closed, so I feel like this is just the beginning.”
Navarro, speaking on behalf of the currently unemployed Foster’s Freeze team, argued that they would have preferred to work for a lower hourly wage than be laid off.
“From the people I’ve talked to, my employees, they would rather stay at their old wages because they don’t have a job right now,” Navarro said. “And the people in the area around us who are still working for $20 an hour have had their hours cut significantly. And the number of people who work shifts has also been reduced significantly. has become even more difficult.”
