A Labored Labor Day

Just when you thought Sacramento couldn't screw anything else up, they drop a giant -expletive deleted- on fast-food chain businesses in the state.  There's some doubt that the Gavinor will sign this legislation into law, so perhaps the 16,753 franchise locations in the state run by 5,820 franchisees won't have to start laying off entry-level workers, raising prices and closing locations that are likely to be in "low income areas" unable to patronize high-priced fast-food.  Here are some details for your Labor Day consideration:

The bill passed by the Democratic Legislature this week creates a 10-member council appointed by the Governor and state legislative leaders with nearly carte blanche authority to fix wages, benefits and working conditions at most fast-food restaurants.  The state’s $15 an hour minimum wage is already among the highest in the U.S., but the council could raise it as high as $22 next year and an additional 3.5% every year after that. It could also require that employers provide paid vacation or “protest days” off as some tech companies do.

The Service Employees International Union championed the bill because it will help extort fast-food employers. Restaurants with collective-bargaining agreements that pay 30% more than the state minimum wage are exempt from most of the council’s orders, so owners would have an incentive to surrender to the union to avoid more costly regulation and potential lawsuits by the state Labor Commissioner.

If this is such a great idea, why stop with fast-food employees of chains with more than 100 locations nationwide?  All sorts of jobs "should" have a minimum wage 50% higher than the minimum wage--it's only "fair".  But what about "affordability"?  Panda Express on the Avenue raising its prices 35-40% on top of whatever the ingredient inflation rate is running at can't be good for "affordability".  Look out In & Out and Taco Bell, if Newsom signs this someone will start Burgers99 and Burritos99 with a limit of 99 locations.  Time to "stay in your lane", Sac.

Comments

[Peter Garrison]

Replicants will take entry-level jobs.
They will be hated and vandalized.
Who will speak for the robots’ dreams?

[Joe Baylock]

Newsom signed it yesterday. The Journal writes:

Michaela Mendelsohn, an El Pollo Loco franchisee in Southern California, said she recently put on hold plans to add to her group of six stores because of the measure.

If wages shoot up, she added, she will consider eliminating cashier positions or installing kiosks in her California locations that allow customers to input orders.

“We’ve gone too far here,” Ms. Mendelsohn said. “It’s just really discouraging.”

Some industry opponents said they have held preliminary discussions about mounting a referendum campaign that would aim to put the issue before California voters in 2024, and seek to invalidate the law.
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Here come the replicants (love that movie Peter)