$20 An Hour For Fast Food Workers In California?!

(VitalNews.org) – Beginning next week, California fast-food workers will get a minimum wage of at least $20 an hour. Democrats last year started speaking out about raising the minimum wage of fast food workers after acknowledging that over five hundred thousand people who work in the fast food industry are adults who are working to support their families, not teenagers right out of high school.

The raise seems to be popular among the working people as they’ve stated that they don’t need to work as many hours or they can work part-time at a fast food place while working somewhere else full time. However, on the other hand, franchise owners are facing a lot of issues as they try to keep their stores afloat.

Alex Johnson owns multiple Cinnabon and Auntie Anne’s locations in the San Francisco Bay Area and he said that the sales have been declining so much that he’s had to fire his office staff and have his parents help with things like payroll.

He continued to say that this would cost him almost five hundred thousand dollars a year in order to afford the raise. He also said that he’s no longer hiring or looking for new locations and he will most likely have to raise his prices.

Johnson said, in reference to the bill’s impact, “I try to do right by my employees. I pay them as much as I can. But this law is really hitting our operations hard…I have to consider selling and even closing my business.” He continued, “The profit margin has become too slim when you factor in all the other expenses that are also going up.”

Right now in California, the minimum wage is around $16 per hour with some places higher than that depending on the market. There has been a lot of talk on whether people would lose their jobs with the increase due to employers paying out more for wages and having to cut people to compensate.

Copyright 2024, VitalNews.org