The far-left government of California is frequently criticized for its decisions. While the state suffers a budget deficit, increasing crime, homelessness, and drug abuse, its lawmakers are pushing radical, progressive policies.
Major cities are watching businesses shut down for good. Streets are littered with homeless, feces, and trash.
Most recently, the state pushed a law that forces the companies that are left to raise the minimum wage to $20 an hour—significantly higher than the federal minimum. And just before this goes into effect, two large companies make a devastating announcement.
From The Post Millennial:
California Pizza Hut franchises will be laying off 1200 delivery drivers due to an increase in the minimum wage for fast food employees coming in 2024. This move to increase the minimum wage to $20 was an initiative of Governor Gavin Newsom…
Southern California Pizza Co. similarly announced that 841 drivers at locations in Los Angeles, Orange, San Bernardino, Riverside, and Ventura counties will be laid off.
Over 2,000 workers will be losing their jobs in California, thanks to the new minimum wage law. Pizza Hut franchises in the state, along with Southern California Pizza Co., announced they were cutting their delivery service, due to the forced higher wages.
The companies will rely on third-party delivery services like DoorDash—which may not be forced to pay drivers the same wages.
Critics have long pointed out the danger of government-forced minimum wage hikes. Many companies already pay wages higher than the federally mandated wage. But in blue states that force businesses large and small to pay upwards of $15 an hour or more, many are not able to stay in business.
Large companies have aggressively moved to eliminate human employees to avoid wage hikes. Some have made their restaurants smaller or eliminated seating altogether. Others have invested in automated systems to do jobs once done by humans—from taking orders to flipping burgers.
Democrats constantly fight to raise wages, arguing big companies can afford it. But they say nothing when these companies lay off thousands of workers or replace them. While higher wages might be popular among voters, it does not seem that forcing them through legislation is the answer.
- Pizza Hut and another company are laying off 1000s of workers, in California.
- This is the result of the liberal state’s new $ 20-a-hour minimum wage for fast-food companies.
- These two companies will be firing their entire delivery services, to avoid paying them.
Source: The Post Millennial