Small Business Success with One Fair Wage: A Comparative Analysis between California and New York
Overview
This report contrasts the effects of One Fair Wage policies in California against New York's subminimum wage system on small business restaurants, with a focus on sales, job growth, and the success of minority and women-owned business enterprises (MWBEs). It investigates the staffing crisis exacerbated by the pandemic and proposes One Fair Wage as a solution for economic stability and equity in the restaurant industry.
Findings
In One Fair Wage states like California, restaurant sales and job growth outpace those in subminimum wage states like New York.
California saw higher small business growth rates and a more significant presence of MWBEs in the restaurant sector compared to New York.
The staffing crisis continues, with significant impacts on tipped workers' livelihoods, emphasizing the need for a stable, livable wage.
Implications for Policy and Practice
The analysis advocates for adopting One Fair Wage policies to enhance economic stability, equity, and the growth of small businesses and MWBEs in the restaurant industry, drawing on California's success as a model.
Related Evidence
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Published January 1, 2023View Evidence
This report explores the systemic issue of subminimum wages for tipped workers in Maryland, a direct legacy of slavery, affecting over 105,000 tipped workers, predominantly women and people of color. It highlights the refusal of workers to work for subminimum wages amid the pandemic, leading to a staffing crisis in Maryland's restaurant industry.
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This guide discusses the implications of Initiative 82 in Washington D.C., aiming to reform the restaurant industry by transitioning from a tipping model to a service charge model. It highlights the historic move away from subminimum wages for tipped workers, aiming to create a fairer wage system.
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This report addresses the National Restaurant Association's efforts to weaken child labor laws, contextualizing it within the staffing crisis in the restaurant industry. It highlights the historical context of the NRA's advocacy for subminimum wages and its shift towards advocating for relaxed child labor regulations to fill staffing shortages.
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This report examines the severe staffing crisis in Illinois' restaurant industry, focusing on the refusal of workers to accept subminimum wages.
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Published June 1, 2023View Evidence
This report highlights the dual crises of youth unemployment and staffing shortages in Chicago's restaurant industry. It discusses the potential of One Fair Wage, a policy to ensure full minimum wage with tips on top for tipped workers, to address both issues simultaneously.