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California Increases Minimum Wage for Fast Food Workers to $20 an Hour

by Iesha
September 29, 2023
Reading Time: 4 mins read
0
California Increases Minimum Wage for Fast Food Workers to $20 an Hour

Twenty20

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California has passed a new law guaranteeing fast-food workers a minimum wage of $20 per hour and giving them a stronger voice in setting workplace standards.

During an event in Los Angeles, Governor Gavin Newsom emphasized California’s role as a pioneer, saying, “The future happens here first.”

The legislation resulted from a compromise in which fast-food companies dropped their 2024 referendum to repeal a law meant to improve employee wages and working conditions.

Labor unions withdrew their bid to make fast-food corporations responsible for franchisee violations.

According to the Bureau of Labor Statistics, in 2022, the median U.S. fast-food worker earned $13.43 per hour, with Californian workers making an average of $16.60 per hour.

Starting in April, the new minimum wage will amount to an annual salary of $41,600.

California has more than 550,000 fast-food workers at 30,000 locations.  Contrary to the stereotype of teenage employees, most of them are family breadwinners.  Additionally, 80% are minorities, and two-thirds are women, according to Governor Newsom.

“We’re not just about growth,” he said.  “This state is about inclusion.”

The law creates a “Fast Food Council” with worker and employer representatives, granting them the power to approve more wage increases and establish workplace standards.  Labor leaders consider this a historic achievement.

California’s general minimum wage stands at $15.50 per hour, one of the highest in the nation.  In contrast, the federal minimum wage has remained at $7.25 per hour, equivalent to $15,080 annually for a full-time 40-hour workweek, and has not been adjusted since 2009.

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