Newsom’s $20 An Hour Minimum Wage Law Leads To Massive Layoffs In California

Since California Gov. Gavin Newsom’s $20 minimum wage law took effect in April, nearly 10,000 jobs have been slashed from the state’s restaurant industry. Struggling franchises have been forced to cut labor and spike prices to survive the costly wage increase, resulting in mass layoffs and a decrease in consumerism.

Tom Manzo, president and founder of the California Business and Industrial Alliance, told Fox News that state lawmakers were living in a “fantasy land” when they thought minimum wage increases would help workers and businesses. He revealed that since Governor Newsom signed AB 1287 into law, which took effect April 1, nearly 10,000 people in the restaurant industry have lost their jobs.

“California businesses have been under total attack and total assault for years,” said Manzo. “It’s just another law that puts businesses in further jeopardy.”

A number of well-known restaurants, such as McDonald’s, Burger King, and even the Golden State’s famous burger chain In-N-Out Burger, had to raise prices to make up for the increased pay. Many were forced to reduce employee hours, and some transitioned to automation, per the New York Post.

“You can only raise prices so much,” said Manzo. “And you’re seeing it. People are not going to pay $20 for a Big Mac. It’s not going to happen.”

Manzo also called fast food “a starter industry” and explained that it was never meant to be a long-term, high-paying job.

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