California Fast Food Workers to Receive $20 Minimum Wage Starting April 1

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ICARO Media Group
Politics
31/03/2024 20h37

However, this increase in wages is expected to result in higher menu prices for customers, as popular food chains like McDonald's, Chipotle Mexican Grill, and Jack in the Box plan to adjust their prices to compensate for the wage hike.

Small business owners, like Brady Farmer, the owner of Chef Bradley Cook's Catering, who are not required to increase their minimum wage, have expressed their willingness to do so voluntarily to retain their employees. Farmer highlighted the additional costs associated with paying higher wages, emphasizing the impact on tasks like shopping, organizing, and driving.

Although the wage increase aims to provide fast food workers with a living wage, it comes at the expense of potential job cuts. Kim Phan, co-owner of Crab Hut, expressed concerns about the rising cost of living and the inability to keep up with inflation. Phan also raised the issue of continuously increasing minimum wages over the past few years, which has not yielded the desired benefits.

Upon the implementation of the law on April 1, California's fast food workers will boast the highest guaranteed base salary in the industry. Currently, the state's minimum wage for all other workers stands at $15.50 per hour, already one of the highest rates in the United States.

The law stipulates that a fast-food establishment must have at least 60 nationwide locations to be obligated to raise the minimum wage. However, restaurants that make and sell their own bread, like Panera Bread, are exempt from this requirement. Any employee who is not paid the minimum wage can file a legal claim with the labor commissioner.

According to data from the U.S. Bureau of Labor Statistics, fast food workers in California currently earn an average of $16.60 per hour, which falls below the California Poverty Measure for a family of four, accounting for housing costs and publicly-funded benefits.

This $20 minimum wage is only a starting point, as the law establishes a Fast Food Council with the authority to further increase it annually until 2029. The council can raise the wage by 3.5% or the change in averages for the U.S. Consumer Price Index for urban wage earners and clerical workers, whichever is lower.

As the implementation date draws closer, speculation grows about the potential impact on the fast food industry and the economy as a whole. Some business owners urge the government to reallocate funds to support workers and stimulate the economy instead of burdening small businesses.

Fast food workers in California are hopeful that this wage increase will provide them with a more secure and sustainable income, while critics voice concerns about the potential repercussions for businesses and the overall economy.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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