OPINION – On April 1, California enacted a piece of legislation that mandates a minimum wage of $20 per hour for fast-food workers. But even the legislation’s primary supporter Governor Gavin Newsom seems to know this policy is bad for business.

Newsom has lauded this move as “extraordinarily beneficial” for the state’s lower-income workers. However, Newsom’s enthusiastic push for a $20 minimum wage for fast food workers in California strikes a chord of blatant hypocrisy when compared to the wages offered at his own PlumpJack Cafe in Olympic Valley—one of the most expensive places to live in the U.S.

Newsom’s business is still offering jobs at $16 per hour, according to a ZipRecruiter posting. If the Governor truly believes that the $20 minimum wage will benefit workers, why doesn’t he offer it at his own restaurant?

The fresh wage requirements have sparked a wave of concern across the Golden State’s business landscape – and for good reason. According to a study conducted by Harvard Business School, every dollar increase in the minimum wage correlates with a 14% uptick in the likelihood of a restaurant’s closure.

The implications of this legislative change are far-reaching. California, already leading the nation with the highest unemployment rate, will inevitably see these figures worsen. The increase in the minimum wage is already beginning to manifest in higher unemployment numbers and price inflation. This exacerbates the hurdles local businesses face, adding to a climate already rife with economic challenges.

Read the full article here