Workers Hours Cut Because of THIS!

(TheIndependentStar.com) – After a new California law raised the minimum wage for fast food employees from $16 to $20 an hour, the owner of several Wendy’s locations in south Los Angeles said he had to cut workers’ hours to handle the increase in labor costs.

“We kind of just cut where we can,” Lawrence Cheng said. “I schedule one less person, and then I come in for that time that I didn’t schedule and I work that hour.”

Experts say it is too early to tell the long-term effects of the wage hike on fast-food jobs and whether there will be widespread layoffs and closures.

According to a University of California, Berkeley study, previous wage increases in California and New York to $15 an hour did not necessarily lead to job losses.

As per the U.S. Bureau of Labor Statistics, the fast-food industry has continued to grow, adding 8,000 jobs in the first two months after the law took effect, compared to the same period in 2023.

Executive vice president of the Service Employees International Union, Joseph Bryant said the industry has not only added jobs but that “multiple franchisees have also noted that the higher wage is already attracting better job candidates, thus reducing turnover.”

However, many fast food operators say they are cutting hours and raising prices to stay afloat.

“I’ve been in the business for 25 years and two different brands and I never had to increase the amount of pricing that I did this past time in April,” said Juancarlos Chacon, owner of nine Jersey Mike’s.

Since lunch is his busiest time, Chacon has reduced staffing in the mornings and evenings and cut a few part-time employees, reducing the number from 165 to about 145.

Yet, Cheng said he has no plans to lay off any of his 250 Wendy’s workers and is instead cutting overtime and reducing the number of workers per shift. He also raised menu prices by about 8% in January in anticipation of the law.

On the contrary, Governor Gavin Newsom said the hike was necessary to give the state’s more than half a million fast-food workers a living wage.

“We are a state that gives a damn about fast food workers — who are predominantly women — working two and a half jobs to get by,” Newsom stated in his state-of-the-state address posted on social media.

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