Story at a glance
- A new rule that raises the minimum wage for many fast-food workers in California was put into place on Monday.
- Employees at most big restaurant chains will now receive at least $20 per hour.
- The industry has mentioned that they might have to lay off workers or increase prices to make up for this, but labor supporters disagree.
(KTXL) — A law improving the minimum wage for most fast-food workers in California began on Monday.
Employees at most restaurant chains with 100 or more locations will now receive at least $20 an hour.
Joseph Bryant, executive vice president of SEIU, stated, “The majority of fast-food locations in California are operated by highly profitable brands. These companies need to pay their fair share and provide their operators with the means to pay their employees a living wage without cutting jobs or passing the cost to consumers.”
In response to the wage increase, fast-food companies have stated that they will need to find ways to make up for this such as laying off workers or raising prices.
In response to the change, two Pizza Hut franchisees mentioned that they would lay off 1,200 delivery drivers. Chains like McDonald’s and Chipotle have indicated that customers will need to pay more in the future. Advocates for workers argue that companies earn more than enough money to avoid those painful measures..
“The threats of price increases and job cuts are the same scare tactics we heard when the wage was set to go up to $15/hour. These warnings have been mostly unfounded,” Bryant said. “In fact, the fast-food industry continues to do very well and make a lot of money. The nine biggest publicly traded fast-food companies alone made almost $25 billion in profits in 2023.”
The law also established the California Fast Food Council, a group of 11 members within the California Department of Industrial Relations who will set standards for working conditions in the industry.
The council will consist of business leaders, worker advocates, and at least one person not linked to the fast-food industry.
A law raising the minimum wage for most fast food workers in California began on Monday.
