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Friday, April 05, 2024

Small businesses concerned over new $20 minimum wage for California fast food workers

The wait is over and California fast food restaurants with 60 or more locations will pay workers at least 25% more than the state's $16 minimum wage.

With the change comes concerns from small businesses, like California Burgers in Citrus Heights. The Sacramento County staple has been in business on Auburn Boulevard for 30 years, but 2024 has brought on new challenges for Co-Owner and Manager Theodore Linardos. 

His family has owned the restaurant that's made a name for fresh food at fast-food prices for decades. The challenge now, he told CBS13, is competition with fast food chain competitors that are now required to pay their workers at least $20 an hour. 

7 comments:

  1. That's one aspect of this fucked up law I hadn't though of. How are the smaller joints going to find workers if they're all going to McCancer, or the like, for jobs?

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  2. It's an interesting take. When I was young, independent gas stations were plentiful. Now they're quite rare. The oil companies didn't like the competition. Now, The Big Clown With The Fallen Arches (and others like him) seems to have found a way to get the government to cull the herd of competition. Mandate higher pay that will cripple the little guy, and subsidize your own outlets until you can jack up prices without worrying about someone undercutting you.

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  3. The pain smaller fast food companies will encounter will be short lived. The bigger companies will have to raise prices or go out of business. The consumer will have to make a choice. Ad nauseam. The market will correct itself.

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  4. Make it MOOOOORE!

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  5. everyone talks of the $20 wage but forget all the hidden cost of the increase. Higher FICA, Unemployment insurance, to name a couple.

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    Replies
    1. Not to mention having to raise the wages for the others already working there that used to get paid a bit more than minimum wage. Or the businesses that don't fall under this mandate, but now will have to pay more to retain or hire workers.
      Already some are closing up and\or using other methods to counter the higher laor costs.
      $16 for 20 or 30 hours is better than $20 for less or no hours.

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  6. I'm surprised that no one has written the obvious truth. The "Minimum Wage" is dead. Gone.
    When you're forced to pay $20/hour or more then you are NOT going to hire anyone without skills and experience. No high-schoolers looking to work their first job for a paycheck, no retarded, no people with alcohol problems or AD; for twenty bucks they need to have experience and skills. Over 41K, plus FICA and the rest.
    Well when I was an telecom engineer I swept the floor in the morning and I was making good money, a lot of guys will be doing that again because the high school kid that came in to do it is gone for good.

    How the next generation will get their foot on the first rung of the ladder I can't imagine.

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