Small-business owners brace for uncertainty as $20 hourly fast-food wage takes effect
LA TimesJustin Foronda, founder/owner of Hifi Kitchen in Los Angeles says he supports a higher minimum wage and tries to pay his employees generously, but the minimum wage is rising so fast that the increased compensation he planned to offer as a retention strategy quickly becomes the new minimum. But with California’s new minimum wage for fast-food workers taking effect this month, Foronda says he’s starting to run out of gas. “These grassroots businesses are part of the glue that holds communities together, and they’re what give the community an identity,” said Chris Tilly, a labor economics and professor of urban planning at UCLA. “Even they see how expensive everything is becoming,” Reich, the economist, said the immediate effects of the wage hike will not be extreme because many entry-level jobs already pay more than minimum wage.