Marcus Nelson’s Post

Assembly Bill No. 1228 went into effect April 2024, making California fast food workers the highest paid in the US. This law increases minimum wages and establishes a Fast Food Council for future adjustments. Read more in this blog by Kirk A. Hornbeck, Brandon Marvisi, and Marcus Nelson. https://ow.ly/aVMn50Rjl8t #legalnews #legalblog

Making $20 instead of $15 sounds like a win, but economics shows there’s no such thing as a free lunch. California lawmakers just proved it. When the minimum wage goes up, the money to pay workers must come from somewhere, and it typically comes from three places: higher consumer prices, reduced labor costs in other areas (fewer workers, fewer hours, reduced benefits, etc.), and lower profits and capital expenditures. Many minimum wage proponents want to focus just on that last item (profits) and ignore the other adverse consequences of the policy. But events unfolding in California show this is a mistake. But raising menu prices isn’t the only way California restaurants are responding. Records submitted to the state show Pizza Hut and Round Table Pizza plan to sack nearly 1,300 delivery drivers. Other chains are taking similar actions, and many restaurants have stopped hiring new workers. This is not unexpected. Critics of the law predicted it would result in less employment, and that’s exactly what has happened. Now, the California legislature is reportedly scrambling to carve out additional exemptions for restaurants. #politics #economics #california #minimumwage https://lnkd.in/g5t4_JPa

I love the snarky tone of libertarian and pseudo antiMarxist procapitalist types that think that everything is all about labor cost resources. Humans aren’t real. We’re just a bunch of robots. No : let’s talk just economies and marketplace and financial dynamics. Let’s not talk about human impact or anything suffering etc. Let’s just talk about the economics. Quantities easy to model in a mind of an accountant. Kind of lame. Missing massive points about what the point of work is altogether. Why operate at all?

It will be interesting to see how California's new minimum wage law, implemented during a time of sharp inflation, will impact consumer spending. Prices were already high in the "Food Away from Home" CPI sector, which has seen a 25.4% increase since February 2020. One thing is for sure, Chipotle wasted no time raising prices at all 476 California locations just two days after the new law was enforced. Delivering the Digital Restaurant could be a good read.

Big News for California’s Fast Food Industry! 🍔🍟 Starting April 1, 2024, AB 1228 will revolutionize the fast food sector in California by setting a new minimum wage at $20/hr for employees at chains with more than 60 locations nationwide. This landmark legislation aims to enhance the lives of approximately 400,000 workers, ensuring fair wages and improved working conditions. Additionally, the creation of the Fast Food Council marks a proactive step towards overseeing future wage adjustments and promoting higher health and safety standards within the industry. For a deeper dive into how this could impact your business, check out our detailed article here: https://lnkd.in/ggbnZvpc #FastFood #California #Compliance #MinimumWage #LegalInsight #ILS

I believe in creating an ecosystem where workers are fairly compensated for the value they bring. Balancing fair wages with sustainable business operations is crucial. California's initiative to increase the minimum wage prompts intriguing observations. The move to raise it to $20 per hour may have unforeseen consequences, potentially leading to higher consumer costs. This adjustment might inadvertently restrict economic opportunities that a higher minimum wage intends to generate. The dialogue on fair compensation is vital. Striking the right balance to support both employees and businesses is essential. This intricate matter demands a holistic approach to ensure a positive outcome for all stakeholders involved. Read more about the impacts of California's $20 minimum wage here: https://lnkd.in/gQfYUGhX #BusinessOperations #EconomicOpportunities #California #USLegislation

The day is finally here, and no, its not an April Fools joke. AB 1228 is being put into effect today, marking a dramatic increase of 25% to the minimum wage in California for "traditional quick-service places, fast casual restaurants, beverage specialists like coffee and boba shops, pretzel stands and bakeries" raising it to $20 an hour. I, along with the rest of the restaurant industry, am waiting on the edge of my seat to see the fallout of this new policy. Championed as a win for organized labor, restaurants are already making massive cuts to their labor force, with one California Pizza Hut franchisee laying off over 1,000 delivery drivers. Others are replacing employees in front-of-house positions with ordering kiosks, while some brands go even further, shifting their focus to incorporating robotics into the kitchen to eliminate labor costs. While the initial impact has been to reduce the labor force, as the policy takes hold, it will be interesting to see what the more permanent impacts will be. Some things I will be watching for in California: 1.) How will brands embrace technology to offset the rise in labor costs? 2.) Will smaller brands, hovering around the 60 location minimum, begin to move out of California? 3.) Menu increases are going to spread like wildfire. How high will they go, and how much will consumers be willing to tolerate? 4.) Are brands going to be able to continue to grow in California? 5.) Will this California case study have a national impact? Only time will tell.

📣 California’s new $20-per-hour minimum wage for fast food workers goes into effect today, April 1, 2024. The California Department of Industrial Relations (DIR) has updated its guidance regarding the new minimum wage law’s impact on exempt managers and which employers and employees are covered. The move comes as Governor Gavin Newsom signed a law adding exemptions to the fast food minimum wage for airports, sports stadiums, and other venues.   Chris Olmsted and Zachary Zagger break down details of the law and discuss next steps for California employers: https://bit.ly/4aBgW7B   #employmentlaw #californialaw #wageandhour

#Industry I These findings are part of a national food precincts program where The Fair Work Ombudsman have often found that low-cost dining comes at the expense of workers’ lawful wages. The FWO found that 74% of businesses had breached #workplace laws. #WorkplaceEthics #WorkplaceLaws #FoodIndustry #Australia #Lawfulwages

California's minimum $20-an-hour pay floor was supposed to be a boon for restaurant workers. It's turning into one giant patty melt short of reality as restaurants lay off staff and reduce hours to cut costs in an already razor-thin margin business. Even workers increasingly concerned about the consequences and less optimistic about any real impact on their incomes. The burger flipped and landed with a "Splat!". On paper, the wage hike was the first step in providing a livable wage for restaurant workers. While the minimum wage increase only applies to California fast-food chains with at least 59 locations across the country, it's been predicted to put pressure on all restaurants in the state to raise wages in order to compete for workers. But what's more likely to happen especially given the changing job market is hours are going to be cut, staff will be streamlined, and hiring will tail off. Inflation and rising prices are condiments no one wants. Some restaurants and chains have already increased menu prices to offset wage increases with mixed results. More customers are now scaling back on dining out, making price increases detrimental to business. To add further salt to an over-seasoned main course, there's yet another bill that would exempt additional restaurants from the definition of 'fast food restaurant,' including such restaurants in airports, hotels, event centers, theme parks, museums, and certain other locations. While the new $20-an-hour minimum wage isn't set to go into effect until April 1, the implications are unraveling faster than a bowl of spaghetti with restaurant owners, workers and customers all drowning under a tasteless marinara. Right now, some are questioning whether finding the meatball is even worth it https://lnkd.in/dSarFHXW #restaurants #fastfood #wages #workers #california #workforce #business #inflation #customers #hospitality