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California Fast-Food Workers See Minimum Wage Increase to $20 Under New Law
On April 1, fast-food workers in California saw a significant increase in their minimum wage to $20 per hour under the new law AB1228. The law, aimed at protecting workers in the industry, replaces the FAST Recovery Act and defines a fast-food establishment as a chain with at least 60 locations nationwide.
The response to the new minimum wage has been mixed, with franchise owners expressing concerns about increased costs and the potential for menu price hikes. Some businesses, including allegedly Pizza Hut, have reportedly laid off employees in anticipation of the wage increase.
On the other hand, fast-food workers have generally supported the wage increase, with the Service Employees International Union celebrating the new law. However, there has been controversy surrounding an alleged exemption for Panera due to its classification as a bakery. A representative for California Governor Gavin Newsom denied this exemption.
To provide clarity, the state issued an FAQ with guidelines on which businesses are subject to the new law, exempting certain types of establishments. California is home to over 500,000 fast-food workers, with the average hourly wage for fast-food workers in 2022 being $16.21.
Overall, the increase in the minimum wage for fast-food workers in California has sparked mixed reactions from different stakeholders in the industry. While workers welcome the raise, franchise owners are concerned about the potential impact on their businesses. The state continues to provide guidance to ensure compliance with the new law and protect the rights of fast-food workers across California.
