WSJ: California Restaurants Lay Off Workers as $20 Minimum Wage Arrives

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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, according to the, California is set to raise the minimum wage by 25 percent to $20 per hour, effective April 1, under a law, AB 1228, signed by Gov. Gavin Newsom in 2023.overseeing it have said the measures would help improve the lives of hundreds of thousands of local workers. Organized labor groups have said they hope to replicate the law in other states.

Though economists have debated whether raising the minimum wage hurts or helps workers, one area where the negative effects are often most keenly felt is in the restaurant industry, where margins are typically small. A wage hike by Seattle to $15 per hour was found in 2017 to have cost the city’s average low-skilled worker $1,500 per year after employers cut working hours,a study sponsored by the city. Many of the hardest-hit businesses by municipal hikes in minimum wage laws across the country have been in the restaurant industry.on Sirius XM Patriot on Sunday evenings from 7 p.m. to 10 p.m. ET . He is the author of the new biography,Neither Free nor Fair: The 2020 U.S.

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