Seattle's New Minimum Wage Law Causes Restaurant Closures

As new minimum wage laws take effect in various states, the hospitality industry faces significant challenges. In Michigan, a pub has introduced a 20% surcharge on bills in response to an upcoming law that eliminates the tip credit, which has raised concerns about potential restaurant closures. Meanwhile, California's recent minimum wage increase for fast food workers has been scrutinized, as adjustments in employment data suggest job losses rather than gains, contrary to initial claims by Governor Newsom. In Seattle, the implementation of a $20.76 hourly wage has led to the closure of multiple restaurants, with owners citing unsustainable increased labor costs and dwindling foot traffic. These developments reflect a broader trend of rising labor costs impacting small businesses across the U.S.