$20 per hour wage costs California 16,000 jobs

[Monello]

Somehow progressives will blame this on Trump.

It has been almost one year since California implemented a $20 minimum wage for quick-service restaurant workers, and industry experts have been debating the long-term effects the wage jump would have on the industry’s job market.

As it turns out, thus far, the 33.3% wage increase for fast-food workers in California has resulted in almost 16,000 job losses — a decline of 2.8% — across the limited-service food industry from September 2023 (when AB 1228 was signed into law) until September 2024, according to the latest Bureau of Labor Statistics data. Since the law went into effect in April, California’s limited-service restaurant industry has seen an employment rate decline of 2.5%.

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Entry level fast food jobs were sort of gateway employment opportunities for people new to the job market. And they paid an equivalent wage for work performed. Then at some point most workers looked around for better opportunities after they had some work experience. Sure managers get much better pay. But not every entry level worker percolates up. I think the increased wage will also trap some folks on the bottom rungs of the salary scale. If they are OK with that, then fine. But don't come back 5 years from now demanding $30 an hour because the money doesn't last the entire month.

 

[Merlin99]

Somehow progressives will blame this on Trump.



link

Entry level fast food jobs were sort of gateway employment opportunities for people new to the job market. And they paid an equivalent wage for work performed. Then at some point most workers looked around for better opportunities after they had some work experience. Sure managers get much better pay. But not every entry level worker percolates up. I think the increased wage will also trap some folks on the bottom rungs of the salary scale. If they are OK with that, then fine. But don't come back 5 years from now demanding $30 an hour because the money doesn't last the entire month.

If an entry level job pays $40K a year what does a career job have to pay?

 

[DaSDGuy]

If an entry level job pays $40K a year what does a career job have to pay?

But they won't get that. Employers will limit weekly hours to around 25 per person. Anything over 30 hours a week is full time and other benefits are required, like paid leave and sick time. Cutting the weekly hours to no more than 25 will be normal from now on. People who were full time at $15 per hour will revert to part time at $20 per hour. Those workers will get paid less per week at $20 per hour.
$15 per hour for 40 hours is $600 per week and they got full time benefits. $20 per hour for 25 hours is only $500 per week and they lose the full time employment benefits. Employers will either use automation to replace those lost work hours or hire another part timer.

 

[Merlin99]

But they won't get that. Employers will limit weekly hours to around 25 per person. Anything over 30 hours a week is full time and other benefits are required, like paid leave and sick time. Cutting the weekly hours to no more than 25 will be normal from now on. People who were full time at $15 per hour will revert to part time at $20 per hour. Those workers will get paid less per week at $20 per hour.
$15 per hour for 40 hours is $600 per week and they got full time benefits. $20 per hour for 25 hours is only $500 per week and they lose the full time employment benefits. Employers will either use automation to replace those lost work hours or hire another part timer.

I'm not talking about the fast food workers, I'm speaking of the career employees, heavy equipment operators, CPA's, electricians...What do they have to make now that the low end has moved up.

 

[GURPS]

But they won't get that. Employers will limit weekly hours to around 25 per person. Anything over 30 hours a week is full time and other benefits are required, like paid leave and sick time.

Yep, back when Obamacare was passed, they were called 29 hr employees ....

so people had to have two 25 hr a week jobs