A sign advertising a digital ordering app is displayed at a McDonald’s restaurant on May 08, 2024 in San Francisco, California. One month after California raised the minimum wage for fast food workers to $20 per hour, menu prices at some chain fast food restaurants have surged as much as 8 percent. (Photo by Justin Sullivan/Getty Images)

by Brooke Mallory


June 6, 2024

As struggling businesses reduce labor expenses and boost prices to counteract wage hikes, fast food restaurants in California have eliminated over 10,000 jobs as a result of the state’s new $20 minimum wage, according to a trade group that reported the findings on Thursday.

The law went into effect on April 1st, and the California Business and Industrial Alliance (CABIA) heavily blamed Democrat Governor Gavin Newsom (D-Calif.) for passing it. The regulation forced the popular Mexican chain, Rubio’s Coastal Grill, to close 48 of its sites in the state last week.

“California businesses have been under total attack and total assault for years,” CABIA president and founder Tom Manzo told Fox News. “It’s just another law that puts businesses in further jeopardy.”

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