LIVERMORE, Calif. — Starting Monday, most fast food workers in California will see their wages increase to at least $20 an hour due to a new law. This law aims to provide more financial security to a historically low-paying profession, but it also raises concerns about potential price hikes in a state known for its high cost of living.
Last year, Democrats in the state Legislature passed the law in recognition that many of the over 500,000 fast food workers in California are not just teenagers earning pocket money, but adults supporting their families.
Immigrants like Ingrid Vilorio, who started working at McDonald’s shortly after arriving in the U.S. in 2019, will benefit from this wage increase. Vilorio expressed gratitude for the raise, mentioning that it would have made a significant difference in her financial situation earlier.
While the law was supported by the trade association representing fast food franchise owners, many franchise owners have voiced concerns about its impact on their businesses amidst California’s slowing economy.
Alex Johnson, who owns multiple fast food restaurants in the San Francisco Bay Area, detailed the financial strain the wage increase will place on his operations. He anticipates having to raise prices and halt expansion plans in California.
Over the past decade, California has incrementally raised its minimum wage, but data shows that these increases did not lead to job losses. In fact, some economists note positive employment effects.
The law, a result of negotiations between the fast food industry and labor unions, applies to certain types of fast food establishments and aims to strike a balance between fair wages and business viability.
Notably, the law excludes restaurants operating within grocery stores and those primarily selling bread. It also addresses specific cases, like the application of the law to Panera Bread despite initial confusion.
Reporting by Beam from Sacramento, California.
