This hastily crafted legislation was just announced by Governor Brown and labor leaders on Monday. In the three days since, both the Assembly and Senate pushed it through with no regard for the many negative consequences this measure will create. Such a dramatic wage hike will force business owners in our industry and many others to make tough choices such as cutting hours, eliminating jobs, or even closing our doors.
But it is not just the business community that has grave concerns about this legislation. In an editorial published this morning, the Los Angeles Times explains:
“Lawmakers should not be so quick to settle for a compromise that doesn't address the very real concern that a wage hike of unprecedented size across very different regional economies could have serious and counterproductive consequences …. there's little experience with wage increases on this scale — a 50% increase over six years or, if you take into account two recent increases, a 90% increase over nine years.
There's even less experience or understanding of what will happen when such an enormous wage boost is imposed on communities with high unemployment, large, low-wage workforces and low costs of living.” Read more here.
The California Restaurant Association co-chairs a robust coalition – California Consumers Against Higher Prices – to advocate on behalf of our members on extreme minimum wage measures such as this overreaching legislation. We cannot afford to let Sacramento politicians recklessly destroy California’s businesses and this legislation will do just that. We will continue to explore our options about how to best fight against such a dramatic proposal and will keep our members informed.