In the realm of quick-service dining, California has embarked on a misguided experiment that serves as a cautionary tale for policymakers nationwide. The recent implementation of a -hourly minimum wage across the state has painted a grim picture, underscoring the importance of careful consideration before implementing sweeping policies.
The Grim Harvest of Higher Wages
As business owners and advocates warned, the Fast Food Accountability and Standards Recovery (FAST) Act has had disastrous consequences. From San Francisco’s “Minimum wage increase in California could lead to layoffs” to the closure of countless eateries, the impact has been swift and unrelenting. Politicians, bowing to pressure from labor unions, failed to heed the concerns of small businesses, leaving them and consumers bearing the brunt of ill-conceived legislation.
Compromise and Broken Promises
In its original form, the FAST Act promised to chain brands and franchise owners together as one entity, destroying the franchise model and threatening the livelihoods of countless independent business owners. While negotiations resulted in concessions, including a compromise wage of and the elimination of joint employer liability, the damage had already been done. Franchise owners now face an impossible choice: comply with the burdensome regulations or risk losing their businesses.
The National Threat of Joint Employer
The Biden Administration’s National Labor Relations Board (NLRB) now aims to impose a similar joint employer policy nationwide. Thankfully, the House of Representatives has passed a repeal, sending the ball to the Senate. Bipartisan support exists, but the fate of this critical measure remains uncertain.
California’s Failing Business Climate
California, once the Golden State, has become one of the most hostile environments for small businesses. With the highest unemployment rate and last-place job growth, it is no wonder that businesses are fleeing in droves. Despite these alarming trends, some politicians advocate for an even more extreme minimum wage, further crippling the beleaguered business community.
Even Voters Revolt
The FAST Act’s author, Assemblyman Chris Holden, has faced the wrath of voters in his bid for a seat on the Los Angeles Board of Supervisors. Holden’s attempt to distance himself from the disastrous legislation reveals the true power behind such policies: labor unions.
Lessons for the Nation
As labor unions attempt to spread their failed California model to other liberal strongholds, it is imperative to remember the lessons learned. Small businesses and consumers pay the price for policymakers who prioritize grandstanding over responsible, evidence-based governance.
Between exorbitant menu prices and dwindling job opportunities, the FAST Act has proven to be a colossal failure. Its consequences serve as a stark warning against hasty, ill-informed legislation that undermines the very businesses and consumers it claims to protect.
