How Minimum Wage in CA is Affecting the Gem State

Minimum wage is where many of us start when we get our first job. It isn't much, but getting that first paycheck is a feeling many of us remember. Hopefully, over time you have been able to move up the ladder and are making more than minimum wage now. You can't make a good living off of it, but it is better than making nothing. It helps pay for gas, buy food, and things you need. Over time, minimum wage goes up, and many of us are upset to find out what today's generation makes, compared to what many of us started at. Depending on which state you live in depends on what the minimum wage is. Recently, the minimum wage went up in California for fast food workers, and while that shouldn't be news in Idaho, it is having an effect here that many may not realize.

California Minimum Wage Affecting Idaho

On April 1, the minimum wage in California for fast-food workers went from $16 to $20. In most states that would be enough to make a good living off of, but in California it doesn't go as far. With minimum wage going up that much, the rest of the country is feeling the effect, including in Idaho. Some chains have said they will not be able to make a profit, with others saying they will have to make adjustments, which may include raising prices and potentially letting employees go. Some stores will have to close locations in the Golden State, as well as potentially others across the country to continue to do business and make a profit. One place that has already seen an effect is MOD Pizza. 

MOD Pizza Locations Closing

In late March, days before the new California minimum wage law would go into affect, MOD Pizza announced they would be closing 27 stores, with five locations being in California. While the company has not released a statement explaining the closures, there is speculation that the new law played a factor. Twin Falls is home to a MOD Pizza, and while it is not one of the locations closing, it does bring attention to how this new law in California could affect businesses in Twin Falls. MOD is likely not the only business that will close stores because of this new law, and which begs the question, who will be next? Could a business decide to close a Twin Falls location going forward and could this law hurt Twin Falls, as well as other towns across the country? 

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It may not seem like it should be a big deal, but everyone is going to feel the effects of the new minimum wage law in California. It will likely hurt many businesses, and only time will tell how it will hurt other towns across the country. As long as restaurants in Twin Falls remain open, then it is a non-issue, but the moment one closes, many will begin to be upset.