The Western Journal
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California’s new minimum wage hike has not even gone into effect and it is already costing the jobs of the very people it was supposed to help.
The Democrat-dominated state Legislature passed Assembly Bill 1228 in September and Gov. Gavin Newsom quickly signed it into law. The law raises the minimum wage for fast food workers from $15.50 to $20 an hour and is scheduled to take effect in April.
As the bill was being debated, then pushed through into law, many restaurant owners warned that the wage hike would result in higher prices for customers.
Now, those warnings have come to pass.
Hundreds of Pizza Hut locations in California have announced that they will be phasing out their delivery services and more than 1,100 workers will lose their jobs, the Los Angeles Times reported.
Federal and state filings from the two franchise owners who run the locations said they “made a business decision to eliminate first party delivery services and as a result [eliminate] all delivery driver positions.”
The restaurants will now rely on third-party delivery services such as Grubhub and DoorDash. This will necessarily mean higher prices for consumers.
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