The fast-food industry has been wringing its hands over the devastating impact on its business from California's new minimum wage law for its workers.
The ad listed a dozen chains, from Pizza Hut to Cinnabon, whose local franchisees had cut employment or raised prices, or are considering taking those steps. According to the ad, the chains were "victims of Newsom's minimum wage," which increased the minimum wage in fast food to $20 from $16, starting April 1.
Here's something you might want to know about this claim. It's baloney, sliced thick. In fact, from September through January, the period covered by the ad, fast-food employment in California has gone up, as tracked by the Bureau of Labor Statistics and the Federal Reserve. The claim that it has fallen represents a flagrant misrepresentation of government employment figures.
Something else the ad doesn't tell you is that after January, fast-food employment continued to rise. As of April, employment in the limited-service restaurant sector that includes fast-food establishments was higher by nearly 7,000 jobs than it was in April 2023, months before Newsom signed the minimum wage bill.
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How do you feel about companies using misleading information to influence public opinion on laws like minimum wage increases?
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If a higher minimum wage could potentially lead to higher prices but better employee living conditions, where do you stand on supporting such legislation?
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Knowing that employment in the fast-food industry actually grew after a minimum wage increase, what does that tell you about the claims that higher wages hurt businesses?
