This time from Minnesota:
Following the minimum wage increases limited service restaurant employment fell by 4% in Minnesota relative to Wisconsin. Further, youth employment fell by 9% in Minnesota following the minimum wage increases, while it increased by 10.6% in Wisconsin over the same time period.
Oh, and restaurant food prices started increasing after they’d been falling for years.
This minimum wage spike has forced several New York City businesses to shutter their doors and will claim many more victims soon. Businesses must meet the $15 wage by the end of 2018, the culmination of mandatory increment increases that began in 2016. Restaurants where staff earn tips are subject to a $5 per hour tip credit, but must pay $10 per hour. That is nearly double the 2014 minimum wage of $8 with a $3 tip credit.
For many businesses, this egregious law is not just an inconvenience, it is simply unaffordable. The most recent victim is long-time staple, The Coffee Shop, a tremendously popular Union Square bar and café favored by many celebrities.
In explaining his decision to close following 28 years of high-volume business, owner Charles Milite told the New York Post, “The times have changed in our industry. The rents are very high and now the minimum wage is going up and we have a huge number of employees.”
If only there were some kind of predictable relationship between price and demand which politicians could look to before passing laws like this one.