California and New York are the first two states to enact a $15 minimum wage and a former McDonald’s CEO, Ed Rensi, says it will be a job killer.
Rensi sat down with FOX Business Network’s Maria Bartiromo to discuss the new rules which he says will destroy small businesses.
“You talk about going from an average wage of $10 up to $15 for a new minimum, you’re talking about a 50% increase in wages. You look at that. Small business is going to get crucified with these rules, the joint employer stuff, the union organizing, these restaurants can’t afford that… it’s inflationary and it’s going to cause prices to go up,” he said.
When New York first announced it had reached an agreement on minimum wage laws, Governor Andrew Cuomo said the move would “restore fairness and decency” to people’s lives.
Rensi doesn’t share that belief.
“The franchisees are going to survive. They are going to do what they need to do to survive and that means they are going to raise prices and cut costs which means getting rid of people,” he tells Fox Business.
It will be some time before we find out if his statements are correct. While new minimum wage laws have been enacted in California and New York, they won’t reach the $15 per hour mark until 2020 on average.