May 15, 2017
At least 60 restaurants in the San Francisco Bay Area have closed in part due to the increased minimum wage. Tipped employees are not exempt from the new minimum wage laws. Rising labor costs have eaten away at restaurant’s profitability. Instead of helping people make more money, people are losing their jobs. Minimum wage laws make it more difficult for low-skilled workers to find work. Forced to pay above market prices for labor, businesses will hire only the best people who add the most value. In turn, people who are willing to work are crowded out and don’t have the opportunity to learn skills to make themselves more marketable.