Minimum wage pay increase already impacting local workforce

The minimum wage in California will go up by 50 cents to $16 an hour in less than a week. According to law, fast food restaurants with 60 locations will have to pay $20 an hour by April 1, 2024.Through the estimations by economic professors, it has been predicted that this would impact customers in many ways. In this reference, a UIC Economic Professor David Neumark say, “You might have longer lines, you might have dirtier, dirty restaurants. There is even a study from Seattle that when they raised the minimum wage, hygiene violations increased, but consumer prices are also one potential route.”

He also explained that according to some estimates, we would loose up to 50-thousands jobs in the state of California and this would affect the employees in many ways. This estimate got proven true for one South Valley Pizza Hut location when their delivery drivers received a letter of separation.

Marvin William Lopez Rangel was one of their drivers who have been working for 5 years and according to him he was laid off due to increased wages. He was very disappointed about this but thankfully he has another job to rely on. He is worried about his colleagues who many no longer have any job to feed their families.

Pizza Hut was being contacted by Action News and they said that their chains are locally owned and operated and have been made aware of the cutbacks.

Layoffs are expected to start in the middle of February.

 

 

 

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