By: Aldi Mehta, Sept. 10, 2024
California’s new law, which mandates that fast-food workers in restaurants with more than 60 locations nationwide be paid a minimum of $20 an hour starting April 1, is a complete and utter disaster for the state, which is already mismanaged, inflated and driven by a rise in homelessness and poverty under Gov. Gavin Newsom’s leadership.
By increasing wages for employees, the law, known as AB 1228, is forcing tenants to find other means to continue paying rent to landlords. The solution: raise prices.
Several fast-food restaurants, including Burger King, McDonald’s and In-N-Out, a California favorite, have already seen noticeable increases in their menu items. Some of the increases have been minimal but others not so much. For example, Burger King’s signature Big Fish meal increased 53% from $7.49 to $11.49.
Consumers are having to bear the burden of this firsthand, as items that used to be affordable are increasingly becoming out of reach. With this, more people will turn away from their favorite items on the menu, putting them at risk of removal.
If fast-food restaurants stop getting customers, how can they survive? This law pushes consumers away from these places instead of bringing them closer.
Though I do not rely on fast-food restaurants for meals, I know that is not the case for many Americans.That is because fast food, though a negative factor in health, is easily accessible, takes less time to prepare and, until now, is widely affordable.
Fast food is not part of my diet, yet it becomes an option for last-minute meals occasionally, or sometimes for social hangouts as an alternative to traditional, healthy home–cooked meals or food from sit-down restaurants. However, fast-food restaurants may become less and less of an option for consumers like me if prices get more expensive. That could very much happen as the bill, in addition to raising wages, also established a fast-food council that has the power to debate and vote on measures that could raise the wage even higher than $20.
Another issue with the law is that employees are being laid off to cut costs due to the increase in wages. Many restaurants are closing delivery services, as is the case with Pizza Hut, which announced in December 2023 that it would end employment for its more than 1,200 delivery drivers across California in preparation for AB 1228.
Officials of Pizza Hut said increasing wages from $16 to $20 was the driving factor in eliminating their first-party delivery services. Now, Pizza Hut drivers are out of a job, and consumers must rely on third-party apps like Door Dash, Grub Hub and Uber Eats to make orders for home delivery.
If people are losing their jobs because of the law, then who exactly wins? Only liberal politicians who use this act to say they did something for Californians, when really, they did not.
That is not even the worst part. Some restaurants have had to permanently shut their doors because of the law. That was the case for small business Fosters Freeze, which told its workers last minute that it was closing because management could not survive the wage hike of AB 1228.
This should not be happening. The fact that a restaurant had to close because of the work of far-left politicians is so hard to imagine. If the Democratic Party speaks highly of small businesses, and considers them to be the backbone of America, then why are they not treated as such? The law is not only mismanaged, but it is insensitive and unfair to workers who put in so much of their time and effort into making a living.
The mismanagement of the state goes beyond just food prices. Constant increases in standards of living, gas prices and taxes make it more than safe to say people are upset with California. The state has become unlivable, and it is only getting worse.
For one Auntie Anne’s and Cinnabon owner, he decided to invest in Nevada and leave business in California. That may be the right thing to do. At least Nevada politicians do not pass laws that kick fast-food employees and small businesses to the curb.
California already has one of the highest minimum wages in the state at $16 an hour, as of January. Wages are supposed to match the rate of inflation, not supersede them. AB 1228 is a sickening and painful law that puts Americans at risk of unemployment, poverty and homelessness. One would think a state already driven by this would think twice before putting more people in harm’s way.
I, like many California residents, am extremely disappointed in our state’s leadership. What were they thinking? Increasing wages exponentially is not the answer to address the growing poverty line. Americans like myself will remember these treacherous actions, especially in a critical election year.
The economy will undoubtedly be on the minds of Californians as they head to the polls in November. It may be time for new leadership, leadership that will get us out of this mess.
Feature photo courtesy of Kenny Eliason
