California’s new law raising the minimum wage for fast-food workers in the state to $20 per hour went into effect Monday, affecting eateries with at least 60 locations worldwide, with the exception of those that make and sell their own bread.
Governor Gavin Newsom signed AB 1228 into law in September. In addition to the salary raises, it established a “Fast Food Council,” which includes both worker and employer representatives and has the authority to approve further pay increases and define working conditions.
California’s overall minimum wage for other workers is $15.50 per hour, one of the highest in the nation. The federal minimum wage, which has not risen since 2009, is $7.25 per hour, or $15,080 per year for a person working 40 hours per week.
According to the Bureau of Labor Statistics, the median fast-food worker in the United States earned $13.43 per hour in 2022, with those in California earning an average of $16.60 per hour. The new minimum translates into an annual income of $41,600.
Workers and labor groups have hailed the new law as a step forward for workers’ rights, with supporters claiming that many fast-food workers are not teens working their first job, as opponents claim.
However, restaurant operators have warned that higher wages will result in job layoffs and higher consumer prices. Several California food restaurants, including Pizza Hut, Southern California Pizza, Round Table Pizza, and Vitality Bowls, declared layoffs following the law’s passing.
“Restaurants are struggling to stay above water, and Democrats just threw them an anvil,” said California Assembly Republican Leader James Gallagher to FOX Business. “We warned Democrats that the new mandate would cost employment. They disregarded us, and now we have the country’s highest unemployment rate, which is expected to rise further.”
