SACRAMENTO – Governor Gavin Newsom’s employment policies are reportedly contributing to higher consumer costs and rising inflation.
A recent report from the Employment Policies Institute indicates that a $20 per hour wage increase has led 98% of surveyed restaurants, including major chains like Burger King, to raise their prices. According to the report, 92% of these establishments anticipate a decline in customer visits due to the price hikes.
The study also highlights potential negative impacts on workers. It suggests that opportunities for overtime may diminish, with 70% of restaurants already laying off employees to manage increased operating costs. Additionally, nearly 90% of respondents have reduced employee hours.
Some restaurant owners are considering relocating their businesses outside California, citing untenable conditions within the state.
California is recognized as one of the most expensive states in the U.S., and critics argue that current employment policies are exacerbating difficulties in securing jobs and affording basic necessities.
###
