Tag: minimum wage

Seattle Set Minimum Wage Over $20 and You’ll Totally Believe What Happened Next

Seattle closed the door on the subminimum wage for people who work for small businesses, earn tips, or enjoy medical benefits under a punishing new minimum wage law. This forced one popular spot to close up shop the same day the new ordinance went into effect.

“Previously, if an employee earned at least $2.72 per hour in medical benefits or tips,” Fox 13 Seattle reported, “a business could pay its workers $17.25 per hour.” As of New Year’s Day, all the exceptions and exemptions are gone. Seattle’s new no-excuses minimum wage is now a payroll-busting $20.76 an hour.

Bebop Waffle Shop threw a big party on Dec. 31 and permanently locked its doors on Jan. 1. My shocked face was last seen sipping a brandy by the fire and reading a dog-eared copy of Milton Friedman’s “Why Government Is the Problem.” That’s my amusingly wordy way of saying that I totally believe it happened.

The local diner’s finances were already suffering due to inflation and lower downtown foot traffic. It was against this economic backdrop that the city chose to impose a 20% pay hike on restaurant workers because politicians put moral preening and virtue signaling ahead of any other considerations.

Then there’s the part I didn’t believe at first but, on reflection, seemed almost inevitable. “I hate to close a safe space for queer people at this time,” Bebop Waffle Shop owner Corina Luckenbach explained on Instagram, “but the money just isn’t there after the minimum wage increase (which I fully support).”

Emphasis added because some folks are just too far gone ever to take the red pill. Still, you want to grab Corina by the hoodie and explain things to her in words she’ll understand, tell her, “Minimum wage laws are bad for queer people and other living things, mmkay?”

Anthony Anton, head of the Washington Hospitality Association, estimated that Seattle will see 5%-8% of its restaurants go out of business — in 2025 alone.

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Bidenomics and California’s $20 Minimum Wage Force San Francisco McDonald’s to Close After 30 Years

The McDonald’s at Stonestown Galleria in San Francisco announced it will shut its doors permanently.

After serving the community for more than three decades, this fast-food staple cites the crushing combination of high operational costs and recent legislative changes as the primary reasons for its closure.

The franchisee owner, Scott Rodrick, confirmed the closure in a statement to ABC7’s Dion Lim.

According to Rodrick, the closure is due to two main reasons: an uncompromising landlord who refused to negotiate a “sensible” rent, and the sky-high property taxes and mall fees, which were reportedly the highest paid for any single location within the company.

Rodrick also pointed out that conducting business in California had become increasingly challenging, especially with the state’s new minimum wage for fast-food workers. He described this as a “gut-wrenching” day for his family.

A notice posted on its door reads:

Dear McDonald’s Customer,

On June 23, 2024, this restaurant (255 Winston Drive at Stonestown Galleria) will be permanently closing. It has been a pleasure for my entire team and I to serve the 19th Avenue and Ingleside neighborhoods for more than 30 years. We are thankful to have been a part of your daily meal routine, either for an Egg McMuffin in the morning or a Happy Meal with the kids after an afternoon of shopping at Stonestown.

All of our valued team members have been offered opportunities to continue working with my restaurant company at other nearby McDonald’s. We hope that you will continue to visit us at our other neighboring McDonald’s restaurants. Or you can have your favorite McDonald’s meal delivered to you via our digital app.

The fast food chain is the latest casualty of Bidenomics and Governor Newsom’s $20 minimum wage law.

Last week, one of Hollywood’s most iconic restaurants, Arby’s Roast Beef, closed after an impressive 55 years in business.

Gary Husch, Leviton’s son-in-law and the general manager of the establishment, echoed these sentiments. Speaking to the Los Angeles Times, Husch emphasized that the combined effects of inflation, the pandemic’s impact on foot traffic, and the draconian wage increase directly led to their difficult decision.

“With inflation, food costs have skyrocketed and the $20-an-hour minimum wage has been the final nail in the coffin,” Husch said.

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Biden and AOC demanded a $15/hr minimum wage, but their Climate Corps pays less than $12 per hour

President Joe Biden and New York Democratic Rep. Alexandria Ocasio-Cortez have loudly advocated for a minimum-wage increase and for addressing what they say is a “climate crisis.” Based on wages offered for the positions listed under Biden’s taxpayer-funded American Climate Corp (ACC) program — many of which pay under $12 per hour — when the two goals conflict, climate change is the priority. 

Biden: “More than a paycheck. It’s about dignity.”

The ACC, according to Biden and Ocasio-Cortez, is modeled on former President Franklin Delano Roosevelt’s Great Depression-era Civilian Conservation Corps. It aims to put “more than 20,000 young Americans to work fighting the impacts of climate change today while gaining the skills they need to join the growing clean energy and climate-resilience workforce of tomorrow.” 

Ocasio-Cortez has been advocating for the program for years. 

“This is not a pipe dream, and this is not some big progressive vision that is quote-unquote unrealistic,” Ocasio-Cortez said at a press conference in July 2021 announcing the creation of the program. 

At the same time, Biden and Ocasio-Cortez have been advocates for increases in the federal minimum wage. Shortly after taking office, Biden issued an executive order to give federal employees and employees of federal contractors a $15 per hour minimum wage. 

“A job is about more than a paycheck. It’s about dignity. When I was running for president, I said it was past time to increase the federal minimum wage to $15 an hour,” Biden said in a statement. 

When opposition arose over the inclusion of a bill to increase the federal minimum wage in the Democrats’ covid pandemic relief package, Ocasio-Cortez upset that the bill was even being debated. 

“It is utterly embarrassing that ‘pay people enough to live’ is a stance that’s even up for debate,” she posted on X. 

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California Restaurants Have Slashed 10,000 Jobs Since Democrats Introduced $20 Minimum Wage

Restaurants across the state of California have cut at least 10,000 jobs since Democrat lawmakers mandated a $20 minimum wage, according to a major trade group.

According to the California Business and Industrial Alliance (CABIA), thousands of restaurant workers have lost their positions as businesses are forced to cut labor costs and raise their prices in order to survive.

The New York Post reports:

The California Business and Industrial Alliance (CABIA) slammed  Democratic Gov. Gavin Newsom for pushing through the law, which went into effect April 1 – and was blamed for forcing one beloved taco chain to shutter 48 locations in the state last week.

“California businesses have been under total attack and total assault for years,” CABIA president and founder Tom Manzo told Fox Business. “It’s just another law that puts businesses in further jeopardy.”

Several major chains – including McDonald’s, Burger King, and even low-cost favorite In-N-Out Burger – jacked up prices to offset the higher wages. Many had to cut employee hours and some have expedited a move to automation.

Manzo said nearly 10,000 jobs have been cut across fast food restaurants since Newsom signed California Assembly Bill 1287 into law last year, adding that officials were living in a “fantasyland” by thinking that drastic wage increases will help workers or businesses.

Just this week, the beloved restaurant chain Rubio’s Coastal Grill, announced that it would be closing 48 locations statewide due to the unaffordable costs of doing business.

“The closings were brought about by the rising cost of doing business in California,” said a statement from a Rubio’s spokesperson. “While painful, the store closures are a necessary step in our strategic long-term plan to position Rubio’s for success for years to come.”

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California’s Catastrophic Minimum-Wage Surge: A Recipe for Disaster Unfolds

The Golden State stubbornly disregards warning signs surrounding the wage hike policies advocated by progressive unions.

According to National Review, California recently rolled out a groundbreaking $20 minimum wage for fast-food workers. However, labor unions, and their radical activist allies, are now pushing hard to expand this wage rate into other industries.

In examining California’s wage policies, it becomes obvious that the likely outcomes have a predictable path. One notable case study highlights the consequences of a near-$20 minimum-wage model, which unfolded within the state’s purview.

In 2021, Unite Here Local 11, a prominent labor organization situated in Los Angeles, orchestrated a series of actions that resulted in a $17.64 minimum wage for hotel employees within West Hollywood. This wage floor represented the highest across the nation. 

Not content with this achievement, the union swiftly expanded its advocacy efforts towards larger targets. These efforts eventually resulted in the adoption of this wage standard across all sectors within the municipality.

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California Fast Food Prices Skyrocket Following Imposition of $20 Minimum Wage

The price of fast food restaurants in California has surged after the state imposed a $20 minimum wage law.

According to an analysis from Kalinowski Equity Research, fast-food restaurants across the Golden State have hiked prices by around eight percent since the law went into effect at the beginning of this month.

The New York Post reports:

Wendy’s raised its menu prices by around 8% while Chipotle Mexican Grill hiked its prices by approximately 7.5%. Starbucks, the Seattle-based coffee chain, raised the prices of its menu items at its California locations by around 7%, while Taco Bell hiked its prices 3%, the report found.

…

It found that Burger King instituted an average price increase of 1.4% for its Whopper Meal and 2.1% for its BK Royal Crispy Chicken Meal at the 25 locations. The report’s authors did the same for Chipotle, which was found to have boosted the price of its Chicken Burrito by 8.3% and its Steak Burrito by 7% at 25 locations in California between Feb. 7 and April 2.

Wendy’s also instituted substantial price hikes on staple menu items such as Dave’s Combo and the Classic Chicken Sandwich Combo. In a comparison of prices from Feb. 12 and April 2 at 25 Wendy’s stores in California, the company raised the price of both items by an average of 8%. McDonald’s appears to be the only fast food chain that has largely held off on raising its menu item prices, according to the report.

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Seattle Law Mandating Higher Delivery Driver Pay Is a Disaster

In 2022, Seattle’s City Council passed an ordinance mandating a minimum earnings floor for app-based food delivery drivers in the city. The law finally went into effect in January 2024, but so far the main result has been customers deleting their delivery apps en masse, food orders plummeting, and driver pay cratering.

The ordinance, part of a legislative package called “PayUp,” was passed under the banner of protecting gig workers. By setting a compensation floor for app-based delivery drivers based on miles driven and amount of time worked, the ordinance operates as a (supremely complicated) minimum wage.

The wage floor is based on labyrinthine calculations: the “engaged minutes” for drivers are multiplied by a “minimum wage equivalent rate,” which is then multiplied again by an “associated cost factor” and then multiplied yet again by an “associated time factor.” Next, this sum is added to the total of “engaged miles” of drivers, multiplied by the “standard mileage rate” and then multiplied once more by the “associated mileage factor.” (If you’re lost, don’t worry—the text of the ordinance itself literally does the math for you).

Heralded as a “first-of-its-kind” legislative breakthrough when it passed, the first two months of the ordinance’s operation have provided a grim real-world Economics 101 lesson. First, the delivery companies were forced to add a $5 fee onto delivery orders in the city to cover the sudden labor cost increase. On cue, news stories started popping up of $26 coffees, $32 sandwiches, and $35 Wingstop orders in which taxes and the new fee comprised nearly 30 percent of the total.

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Panera Bread exempt from California’s $20 minimum wage law after owner donated to Gov. Newsom

California Gov. Gavin Newsom signed a law that exempts Panera Bread from a new $20-an-hour minimum wage hike for fast food chains after the billionaire owner of several of the chain’s locations donated to his campaign, according to a report.

In September, Newsom, a Democrat, signed into law a measure that raises the minimum wage of food fast workers from $16 an hour to $20 an hour.

But the Fast Food Accountability and Standards Recovery Act (FAST Act) includes an unusual carve-out that exempts “chains that bake bread and sell it as a standalone item,” according to Bloomberg News.

Newsom reportedly sought the exemption, which benefits among others Greg Flynn, the billionaire CEO of Flynn Restaurant Group, the company that owns some two dozen Panera Bread locations in the state.

Flynn, who attended the same high school as Newsom, has been involved in business dealings with the California governor, according to Bloomberg News. He has also contributed to Newsom’s political campaigns.

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California Senate Hopeful Barbara Lee Wants $50 Per Hour Minimum Wage

Minimum wage advocates are often asked why, if they think prosperity can be achieved by setting a floor on what people are allowed to charge for their labor, they don’t just hike it until everybody is wealthy? A candidate for the U.S. Senate has now risen to that challenge, proposing to set wages as high as $50 per hour. That could be a pathway to making everybody wealthy—if only the minimum wage made sense as policy, which it doesn’t.

This week, the four leading candidates for the U.S. Senate seat opened by the overdue departure of Dianne Feinstein met for a televised debate. Under California’s open primary system, Democratic Reps. Adam Schiff, Katie Porter, and Barbara Lee, Republican Steve Garvey, and all other candidates for the seat will go against each other March 5, with the two top vote-getters facing off in November.

Unsurprisingly for California and the year 2024, the spotlight was on bad ideas.

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California’s New Minimum Wage Is Predictably Killing Food Delivery Jobs

A new California law will require that most food-service workers get paid at least $20 per hour starting next year.

But hundreds of pizza delivery drivers in the Los Angeles area are about to discover Thomas Sowell’s famous adage that the true minimum wage is zero.

Pizza Hut announced Wednesday that it would lay off about 1,200 delivery drivers in Los Angeles, Orange, and Riverside counties, CBS News reported. Pizza Hut franchises are outsourcing delivery to third-party apps like GrubHub and UberEats as a cost-saving measure in advance of the new law taking effect.

The layoffs are likely to take effect in February, The Los Angeles Times reports, just weeks before the new, higher minimum wage hits.

California’s minimum wage for all workers is already $15.50, one of the highest wage floors in the country. The new $20 per hour minimum wage applies to all employees of fast-food chains with at least 60 locations in the country.

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