California Passes New Law Increasing Minimum Wage for Fast Food Workers to $20 per Hour
In a groundbreaking move, California has passed a new law that will significantly raise the minimum wage for fast food workers to $20 per hour. This change is aimed at providing financial security to a profession that has historically been known for low pay.
The decision to raise the minimum wage for fast food workers comes after the realization that many employees in this industry are adults who are supporting families, rather than just teenagers earning extra spending money. Immigrant workers like Ingrid Vilorio have expressed gratitude for the wage increase, noting that it will help them avoid the need to work multiple jobs to make ends meet.
While the new law has been met with applause from workers, some franchise owners have raised concerns about the potential impact on their businesses. One owner has stated that the wage increase could cost him $470,000 per year and may even lead to the closure of his business.
Despite these concerns, labor economics professor Michael Reich has pointed out that data from the past decade in California suggests that previous minimum wage increases did not result in significant job losses.
The law was the result of a compromise between the fast food industry and labor unions, reached through private negotiations with confidentiality agreements. It applies to fast food restaurants with limited or no table service that are part of a national chain with at least 60 establishments nationwide. However, restaurants inside grocery stores and those primarily selling bread are exempt.
Controversy arose over the bread exemption, with initial reports suggesting it applied to Panera Bread restaurants due to a wealthy campaign donor to Gov. Newsom. However, the administration clarified that Panera Bread is not exempt, and the donor has announced plans to ensure that workers are paid at least $20 per hour.
“Travel aficionado. Incurable bacon specialist. Tv evangelist. Wannabe internet enthusiast. Typical creator.”