In less than a week, California’s minimum wage will rise by 50 cents to $16 per hour, and fast-food companies with 60 or more locations must pay $20 per hour by April 1, 2024.
California Minimum Wage Hike Sparks Concerns of Longer Queues, Job Losses, and Price Increases
Customers may face longer queues, hygiene issues, and higher prices, according to economists. UIC Economics Professor David Neumark cited a Seattle study linking minimum wage increases to hygiene infractions. According to Pepperdine University professor David Smith, the wage boost might cost California up to 50,000 jobs.
South Valley Pizza Hut has taken steps to prepare for the pay increase. Delivery drivers in this area received separation letters, and five-year veteran Marvin William Lopez Rangel will be laid off. Marvin felt betrayed and that it would damage staff and customers. Wage hikes will raise prices and delivery costs, he expects. Marvin has a backup job, but he worries about his coworkers who may have trouble supporting their families.
Marvin thinks businesses, especially in the Central Valley, can retain workers despite the pay rise. He stresses community support and says workers’ wages support Central Valley businesses.
READ ALSO: CA fast-food worker wage increase will begin in 2024. Here’s how it’ll affect you
Pizza Hut Job Cuts Highlight Concerns Over Impact of California’s Minimum Wage Increase
Pizza Hut said that their chains are locally owned and run and that management is aware of the cuts. Layoffs should start mid-February. This Pizza Hut outlet shows how minimum wage rises can lead to job losses and affordability issues for businesses and customers.
Experts disagree on how California’s minimum wage rise would affect businesses, employment, and the economy.
READ ALSO: Minimum wage pay increase already impacting local workforce