PRC Comes Up With New Idea: $25 Minimum Wage For Health Workers

Gee, what could possibly go wrong?

California Health Workers May Face Rude Awakening With $25 Minimum Wage Law

Nearly a half-million health workers who stand to benefit from California’s nation-leading $25 minimum wage law could be in for a rude awakening if hospitals and other health care providers follow through on potential cuts to hours and benefits.

A medical industry challenge to a new minimum wage ordinance in one Southern California city suggests layoffs and reductions in hours and benefits, including cuts to premium pay and vacation time, could be one result of a state law set to begin phasing in in June. However, some experts are skeptical of that possibility.

The California Hospital Association brought a partly successful legal challenge to Inglewood’s $25 minimum wage ordinance, which barred employers from taking those sorts of steps to offset their higher costs.

“Layoffs, reductions in premium pay rates, reductions in non-wage benefits, reductions in hours, and increased charges are consequences of an employer having less money to spend—which will necessarily be the case given the significant increase in spending on wages due to the minimum wage,” the association said in its lawsuit. Additional examples include reducing health coverage and charging for parking or work-related equipment.

All those results are a wee bit more important than when it happens in the food industry, eh? I wonder if they realize that a lot of health workers are employed by the local, county, and state governments, who would have to raise taxes/fees and/or reallocate money from other budget sectors? The Inglewood suit is interesting, in that their law stated private businesses could no longer make their own economic decisions despite the increased costs.

Providers could reduce the services they offer, pare back charity care, and cut or delay capital investments, Spetz said. In the long term, she expects some combination of spending cuts and revenue increases.

Both the state law and local ordinance cover far more than doctors and nurses, with a definition of health worker that includes janitors, housekeepers, groundskeepers, security guards, food service workers, laundry workers, and clerical staff.

So, pretty much everyone. I wonder how many are part of unions that give to Democrats? And will soon understand that the road to Hell is paved with good intentions?

“The minimum wage an employer has to pay its employees will invariably affect the total amount of compensation it is able or willing to pay,” he wrote “This will then invariably affect the number of employees it can retain and the number of hours those employees will be scheduled to work.”

Lawmakers should be required to take Economics 101, well, Democrats, anyhow. Then have to spend at least several hours a week following around business owners and bookkeepers to understand How Economics Works.

(KTLA) Some fast food restaurant chains have raised menu prices by as much as 8% since California’s $20 an hour minimum wage law took effect April 1, according to a new report.

Wendy’s has hiked prices by roughly 8% while Chipotle has raised prices by 7.5%, according to data from Kalinowski Equity Research and cited in The New York Post.

Taco Bell raised menu prices by 3% and Burger King hiked prices by 2%, the report found.

Seattle-based Starbucks increased prices by about 7% in California.

Huh.

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