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Large Minimum Wage Hike Strikes Again, Killing Restaurant Jobs in California and Washington State

Large Minimum Wage Hike Strikes Again, Killing Restaurant Jobs in California and Washington State

“There have been several restaurants in Seattle that have closed because of the [burdensome] laws that are coming down—that are hitting them—and the minimum wage is one of those”

https://youtu.be/9riNd6sLlQE

While America is enjoying record low unemployment, some areas are actually experiencing the loss of jobs. In certain cities where progressive activists and politicians have forced increases in the minimum wage, restaurants who can’t keep up are closing and taking jobs with them.

Frank Connor of FOX Business highlights this report about Seattle from Stuart Varney:

Minimum wage strangling Seattle restaurant workers

Minimum wage increases may be costing Americans their livelihoods.

“There have been several restaurants in Seattle that have closed because of the [burdensome] laws that are coming down—that are hitting them—and the minimum wage is one of those,” Full Service Workers Alliance co-founder Simone Barron told FOX Business’ Stuart Varney.

Beginning in 2020, the city of Seattle will increase the minimum wage for companies employing over 500 workers from $16 per hour to $16.39 per hour. Companies employing 500 workers or fewer will see their required minimum pay increase from $15 per hour to $15.75 per hour in the new year—if they do not contribute $2.25 per hour to medical benefits or the employee does not earn $2.25 per hour in tips.

Barron herself is a victim of this mandated pay raise. The restaurant at which she currently works, her former place of employment, and the restaurant at which she was hoping to work will all be closing in 2020, she said.

“All of this is due to the minimum wage increase paired with other laws that are coming down through our city council,” she explained.

In the video below, Barron notes that food service workers did not ask for this increase and wonders if they could be exempted from it:

A similar thing is occurring in Sacramento, California.

CBS News Sacramento reports:

Sacramento Restaurants Closing Due To Imminent Minimum Wage Increase

With California’s minimum wage set to increase on January 1, restaurants facing high rent and staffing costs said it’s a price they can’t afford, which is forcing some to close their doors.

“It’s bittersweet. It’s been 14 years. It’s been a good run,” said Phil Courey, the owner of Opa! Opa! Greek restaurant in East Sacramento…

The minimum wage increase, which will hit $13 per hour, applies to businesses with 26 or more workers. Employers with fewer than 26 workers will have to pay a minimum wage of $12 per hour.

When considering his operating costs, Courey said it is just unsustainable.

“The wages are definitely a heavy pressure on us,” he said. “About 40 grand a year every time they jack up the minimum wage.”

Meanwhile, another popular Sacramento restaurant closed under pressure.

In South Sacramento, Perry’s restaurant along Highway 99 served their final meals on Sunday. Some customers who lined up for the last meal were dismayed.

“It’s really sad just thinking about this,” Patricia Smith said. “It’s an institution. This is a Sacramento institution.”

This is what happens when activists and politicians, many of whom have never owned businesses, are allowed to dictate policy to job creators.

Featured image via YouTube.

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Comments

This can’t be…I was told that jobs were unaffected 6 months after law passage.

LOL, it takes time libbies.

There is data going back to the 60 to prove rising the rate costs entry-level jobs, hours and on and on.

Labor is a cost. Put a price floor on labor (which is what a min. wage is) and not only do you limit employers’ options for managing costs, but also limit jobseekers’ options for marketing themselves. Just an all-round bad idea supported only by the professionally layabout.

My son worked as a waiter/bartender at Outback while attending college. Wait staff makes their income primarily via tips and, since there are no records of how much they are tipped, they can be “creative” in how they report income. They are far more interested in tips than the hourly wage.

We have stopped going into Seattle for dinner. Part of the reason has been the higher cost for a dinner. After putting up with the 20% tax on parking, the complete lack of safety after dark in the city, and the swarms of junkies/drunks/crazies living in tents throughout the city we just go to Bellevue now.

Too bad, Seattle. You had a good run.

Your job will be easier to take for $15.00 an hour.

In more ways than you think,

SeekingRationalThought | December 18, 2019 at 4:15 pm

How can this be? Here in St. Louis, it seems every restaurant I visit is looking for employees? Could it be ….Economics 101? 🙂 We laugh but these “progressive” charlatans on the two coasts are ruining peoples lives.

Both politically congruent wage hikes and progressive prices are first-order forcings of catastrophic anthropogenic climate change. In theory, the market will mitigate its progress through self-organization and organic optimization, but whether through regulatory capture and arbitrage, or catastrophic anthropogenic immigration reform, the market is being steered and rendered dysfunctional, with an effect exacerbated in high-density population centers.

Subotai Bahadur | December 18, 2019 at 5:08 pm

Pretty much a 100 mile strip along the entire US west coast is economically and socially ruining the 3 west coast states. It is not like there has not been plenty of warning. Those who remain in that strip have made their choice. They are going to destroy themselves, and all that can be done is a) laugh at them and b) try to make sure that they stay where they are so that they can live through what they created.

I do feel some sympathy for those east of that strip, and I hope they can defend themselves.

Subotai Bahadur

    The “shithole quotient” is on the rise in many west coast enclaves. Completely preventable and addressable, but beyond the comprehension of leftists.

And don’t forget, Ms. Barron herself is doubtless a typical down the list left winger who voted for every miscreant presently making her life difficult.

    puhiawa in reply to Titan28. | December 18, 2019 at 6:36 pm

    Undoubtedly. That is why she is asking for an exemption rather than a repeal. It is OK for other businesses, so long as it does not affect her, you see. Democrat for sure.

Unexpectedly.

The real, true minimum wage is $0.
Which these workers are about to find out the hard way.

The Dems/Progs think the laws they pass are exempt from rules of economics. They are not. The legislators are far above the citizens affected, and really don’t care.

Summers are still spent at the dacha, with no worries about the peasants. Let them eat cake.

As those restaurants close due to mandated government minimum wage, what about those businesses which provide goods and or services to the closing restaurants? They will have fewer sales and therefore need to lay off their employees. The unintended consequence is a chain reaction impacting other businesses and individuals. Also, there will be no businesses nor individuals to tax in these cities.

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