California will lose more than 6,000 fast-food restaurant jobs starting in September 2023 due to recent legislation increasing the fast-food minimum wage, according to an analysis released Thursday by the Employment Policy Institute (EPI). That's what it means.
Since the law was passed in September 2023, private fast food restaurants in the state have lost 6,166 jobs through June. According to to the report. According to EPI, previous research shows that before the law took effect, some restaurants in California took steps such as reducing staff, shortening regular business hours, and increasing menu prices to meet the minimum wage. This indicates that they were beginning to prepare for the hike.
Signed by Democratic California Governor Gavin Newsom AB1228 The law will come into force in September 2023. law It increased the minimum wage for fast-food restaurant workers, requiring them to pay at least $20 an hour starting in April, and created the Fast Food Council. (Related article: 'No more': Charlamagne tells Gavin Newsom to stop saying he wants to 'stop Trump' in California)
(Allen J. Scherben/Los Angeles Times via Getty Images)
Several fast food chains in California announced business changes ahead of the bill, including laying off delivery workers and potentially raising menu prices. According to To outlet KTLA based in California. As of July, the state's population totaled 750,500. fast food Most jobs in state history; According to To an August press release from Newsom's office.
In his September announcement, Newsom touted several positive effects of the policy, including increased employment and improved working conditions. Editorial Published by Fox News. Although Newsom touted the state's fast-food job growth in an op-ed, seasonally adjusted federal employment statistics contradict his claims, showing that overall fast-food employment in the state has declined since the beginning of the year. It was shown that According to Go to Center Square. (Related: 'The proof is in the pudding': Why California's voting policies create 'permanent delays' that bring the country to a standstill)
“Today's Fox News op-ed by the governor is disappointing because it paints a very misleading picture of what's happening on the ground,” said Rebecca Paxton, EPI's director of research and state coalitions. He told Center Square in an interview this month. “Instead of touting these numbers, which most economists would say don't accurately measure the situation, Governor Newsom is talking to workers who are losing jobs and losing their livelihoods as a result of this policy. There is an obligation to have a dialogue with the management.”
“This is a sham trade association funded by corporate restaurant chains to protect their profits,” a Newsom spokesperson said in a statement shared with the Daily Caller News Foundation. “Fast food jobs peaked in unprecedented numbers this summer, and multiple independent research studies now back up that data. What's good for workers is good for business. ”
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