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In reply to the discussion: Californians turn on IN-N-Out. talking boycott, CEO become a billionaire here then trashes Calif on her way out [View all]Igel
(37,015 posts)She's not closing In N Outs in Calif. That minimum wage stays the same.
And if she opens storefronts in TN with HQ remaining in Calif., she still has the base of TN minimum wage for those storefronts in TN. Calif. doesn't dictate TN law for franchises.
Note that "minimum wage" is the actual wage for a very small fraction of employees. Even those working "minimum wage jobs". Ten years ago my high-school students working fast-food were starting at $11/hr. Not minimum wage.
In TX the minimum wage is $7.25. But https://www.indeed.com/cmp/In--n--out-Burger/salaries?location=US%2FTX notes that In-N-Out has starting wages for "store associates" (that's the counter clerks) in Houston as $17.50. Higher in Austin.
Moving the HQ just affects things like state corporate tax and reporting requirements for the corporation. The franchises in Cali have all the same requirements because they're in Cali. (Note that one thing that Calif. does is charge corporate income tax for *all* corporate earnings--if their rate is 8.8% and TN charges 6.5%, then California requires that 8.8 - 6.5 or 2.3% of gross income *from TN operations* be paid to Sacramento. Move HQ to TN and TN don't care about income from other states, because the other states charge that.
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