A new law will pay most California fast food workers at least $20 an hour starting Monday, offering them more financial stability in a historically low-paying profession while threatening to hike costs in a state with a high cost of living.
Last year, Democrats in the state Legislature approved the bill to recognize that many of the more than 500,000 fast food workers are adults supporting their families.
Some immigrants, like Ingrid Vilorio, started working at McDonald's after arriving in the US in 2019. Fast food was her full-time job until last year. She works various jobs and eight hours a week at a Jack in the Box.
The $20 rise is excellent. “I wish this had come sooner,” Vilorio remarked through a translator. Because I wouldn't have looked for so many jobs elsewhere.” Fast food franchise owners' trade association supports the bill. However, many franchise owners have complained about the law's effects, especially in California's deteriorating economy.
Johnson will spend $470,000 annually on pay increases. He stated his businesses will have to raise prices by 5% to 15% and he is no longer hiring or opening new sites in California.
In the past decade, California has raised its minimum wage for most workers to $16 per hour. As companies' expenses rose, some workers were worried about losing their employment. According to University of California-Berkeley labor economics professor Michael Reich, salaries rose and employment did not shrink.
Fast food companies and labor organizations have been wrangling over pay, benefits, and legal liabilities for nearly two years. The law was a carefully planned compromise. Unions and the industry signed confidentiality agreements during private negotiations that led to the bill.
Panera Bread initially looked to be immune from bread taxes. Bloomberg News stated the shift will help Newsom's rich campaign donor Greg Flynn. However, the Newsom administration claimed that Panera Bread is subject to the wage hike law since it does not bake dough. Flynn will pay his employees at least $20 per hour.
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