California’s $20 Minimum Wage Costs Fast-Food Workers

Most operators (89%) have already been forced to reduce employees’ scheduled hours

Letter to The WSJ. 

"Your editorial “California’s Minimum Wage Backfire” (July 20) presents evidence that Gov. Gavin Newsom’s $20 minimum wage is hurting California. Here’s one more for the file: 89% of fast-food restaurant operators say they are now less likely to expand in California. That’s according to a new Employment Policies Institute survey of restaurant operators who employ tens of thousands of workers in the state.

Most operators (89%) have already been forced to reduce employees’ scheduled hours, while 70% say they have had to slash jobs. Operators’ responses indicate these negative impacts will continue. Three-fourths said the law increases the likelihood they will have to close entirely. This is the tragic cost of Mr. Newsom’s ill-conceived law. Until he accepts these consequences and reverses course, more Californians will suffer.

Rebekah Paxton

Employment Policies Institute

Arlington, Va."