The California legislature just cost these workers paid time off for family issues

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The tyrannically liberal People’s Republic of California continues to make life miserable for businesses and workers.

But while the state legislature is busy pushing its woke agenda on everyone in the state, they never stop to realize the negative effect their laws have until it is too late.

Workers are now seeing just what the effect of the new minimum wage law will have on their lives, and they don’t like it one bit.

CA franchise is making radical changes to employees’ pay and more

California resident Marcus Walberg and his family operate four Fatburger franchises in the city of Los Angeles, and they’ve managed to survive all kinds of headwinds.

Despite state labor laws that increased their operational costs, economic downturns, and the pandemic, the four Fatburgers have been able to stay afloat.

But according to Walberg, doing business in California these days “has been more strained now than any time I can remember.”

California’s new fast-food worker law is largely to blame, which will mandate that fast-food employees receive $20 an hour as minimum wage.

The new law goes into effect in April – and those new wages will be 30% more than most businesses typically pay fast-food workers now.

Once the law becomes active, it will affect around 557,000 fast-food workers at approximately 30,000 restaurants in the state.

Two California Pizza Hut franchisees have preemptively decided to get rid of their in-house delivery fleets altogether, which will leave 1,200 drivers without a job.

According to Walberg, “I feel that there will be a lot of pain to workers as franchise owners are forced to take drastic measures.”

Speaking with Business Insider, Walberg said he’s making some drastic changes of his own so that the new wage law doesn’t “bring us down.”

He said that raising menu prices is the first thing California fast-food owners are considering, and “It’s a scary thing because customers are already complaining that prices are too high.”

Prices were up 8% at Walberg’s four restaurants year over year, and when the wage increase hits, “we’ll have to take another 8-10% increase.”

Walberg is also forced to reduce labor costs, so he’s going to start cutting employee hours and implement a hiring freeze.

“We’re not hiring new people to fill jobs. We’re being very tight on schedules,” he said.

More changes are coming

Higher prices and fewer employee hours aren’t the only things Walberg is doing to try and cut costs.

The franchisee also said he plans to eliminate his PTO program at the start of this year “to prepare for the increase in wages in 2024.”

He once offered eligible workers up to 72 hours of paid time off per year, which gave them flexible time off for vacations and days with their families. 

Now, he says, “We just can’t afford to do that anymore. It’s a real shame.”

Currently, the minimum wage in California is $16 an hour, but it’s $16.78 an hour in the city of Los Angeles.

Walberg said, “This program should have been phased in over time instead of jumping the California minimum wage for our staff by 25% in one single day.”

Now, he says that he’ll also have to raise wages for managers and shift leaders since they likely won’t “do all that extra work for the $20 minimum wage.”

For California-based business owners like Walberg, the hits just keep on coming.

Informed American will keep you up-to-date on any developments to this ongoing story.