California Minimum Wage Law Goes Into Effect
In a shocking turn of events, a popular California small business has been forced to close its doors due to the state’s recently enacted $20 minimum wage. The Foster Freeze restaurant in Lemoore, California abruptly closed on Monday morning, leaving several employees without a job. Among them is former assistant general manager, Monica Navarro, who spoke candidly about the situation to a local news station.
Navarro expressed her disappointment and disbelief at the sudden closure, stating that the restaurant’s owner, Loren Wright, had given no prior notice. She revealed that upon arriving for work on Monday morning, she and her colleagues learned that the restaurant would not be opening its doors that day and that the decision to close had been made over the weekend. Navarro also shared that the owner had cited the new minimum wage law as the primary reason for the business’s demise.
According to Navarro, the new law went into effect on Monday and was aimed at businesses with 60 or more locations nationwide, with the exception of those that make and sell their own bread. She mentioned that although Foster Freeze was exempt from this law due to its owner’s number of locations, he ultimately cited the minimum wage increase as the reason for the closure.
Navarro also spoke about the impact this closure had on her and her colleagues’ lives. She revealed that they would have preferred to work at a lower wage, rather than lose their jobs altogether. She also mentioned that other businesses in the area were facing similar issues, as they were forced to increase wages and reduce hours for employees in order to stay afloat. Navarro believes that this is just the beginning and that more businesses may follow suit as a result of the new minimum wage law.
Foster Freeze’s owner, Loren Wright, spoke to a local news station about his decision to close the business. He shared that the idea of raising prices to accommodate the higher wages was not an option for him, as he did not want to risk losing customers. Wright also mentioned that he did not want to ruin the Easter Sunday holiday for employees and customers by closing on such short notice, resulting in the decision to cease operations on Monday.
The sudden closure of Foster Freeze has caused quite a stir in the community, as it was a popular spot for residents. Many took to social media to express their disappointment and support for the former employees. Some even called for a repeal of the new minimum wage law, citing its detrimental effects on small businesses.
The closure of Foster Freeze also raises concerns about the long-term implications of the new minimum wage law in California. While the law was intended to benefit workers and stimulate the economy, it may end up having the opposite effect on small businesses. With increased wages and reduced hours, these businesses may struggle to stay afloat, resulting in closures and job losses.
In response to the closure, lawmakers and activists have been debating the effectiveness and impact of the minimum wage increase. Proponents argue that it will improve the lives of workers and boost the economy, while opponents believe it will lead to job losses and hurt small businesses. With the closure of Foster Freeze, these concerns may become more pressing for both sides of the argument.
Overall, the sudden closure of Foster Freeze highlights the challenges that small businesses in California are facing as a result of the new $20 minimum wage law. While the full impact of the law remains to be seen, it is evident that businesses and employees are beginning to feel its effects. Whether or not the state will take action to address these concerns and find a balance between wage increases and business sustainability is yet to be seen.