California lawmakers passed a law that would pay fast-food workers more—and the world's biggest fast-food chain is slamming it. In a letter on McDonald's website, the company's president of the U.S. division, Joe Erlinger, says the measure "makes it all but impossible to run small-business restaurants."
With every one of these hair brained moves they make the break even point for automation less and less. At $22 an hour you have to add an incredible amount of value to the process you perform to justify your hourly wage.
There are more costs to an employer of an employee than just the hourly wage. In California there is workman’s comp insurance, federal and state unemployment insurance, medicare and social security taxes, and an employment training tax. I have to assume this cost is at a minimum, 10% of the employee’s wage and probably higher. So your $22/hour employee is costing the business about $25/hour.
Trash Panda
3 years ago
I’d like a small ice cream cone please, “That will be $23.17”.
Stewie the Roof Baby
3 years ago
Either automate or go out of business
mqyl
3 years ago
This is fast food companies’ cue to automate more.
Poor Taxpayer
3 years ago
Illinois should do the same thing. Everyone in Illinois should be guaranteed $25 per hour whether they work or not. Just end all pension contributions and there would be more than enough money.
A largely unasked question is becoming glaring: Is Illinois doing all it should to use artificial intelligence to make government cost less and work better? So far, the evidence says no.
With every one of these hair brained moves they make the break even point for automation less and less. At $22 an hour you have to add an incredible amount of value to the process you perform to justify your hourly wage.
There are more costs to an employer of an employee than just the hourly wage. In California there is workman’s comp insurance, federal and state unemployment insurance, medicare and social security taxes, and an employment training tax. I have to assume this cost is at a minimum, 10% of the employee’s wage and probably higher. So your $22/hour employee is costing the business about $25/hour.
I’d like a small ice cream cone please, “That will be $23.17”.
Either automate or go out of business
This is fast food companies’ cue to automate more.
Illinois should do the same thing. Everyone in Illinois should be guaranteed $25 per hour whether they work or not. Just end all pension contributions and there would be more than enough money.
I forgot to mention, I’m an idiot
$22/hour for fast food workers?
How much are they going to have to charge for food with that overhead?