Most fast food workers in California are now making a $20 per hour minimum wage.
The minimum wage increase went into effect on Monday after California Governor Gavin Newsom signed Assembly Bill 1228 into law last September.
California's minimum wage was already one of the highest in the nation, at $16 per hour. The federal minimum wage has been $7.25 an hour since 2009.
The latest increase will apply to franchise owners of major stores with 60 or more locations nationwide.
The Hill reports:Prior to the measure going into effect, fast food workers were making about $34,530 per year, according to data in 2022 by the U.S. Census Bureau of Labor Statistics. That amount is lower than the California poverty line, which is around $36,900 for a family of four, according to a study from the Public Policy Institute of California and Stanford Center on Poverty and Inequality.
Despite this, California’s fast food worker average wage was still around $3 higher than the national average of $13.53 per hour for fast food workers.
According to a report from the Los Angeles Times, restaurants, including McDonald’s, Starbucks, and Jack in the Box, are planning to pass the higher costs onto customers. Jack in the Box plans to raise prices from 6 percent to 8 percent across the board.
Other businesses, including Pizza Hut, Round Table Pizza, Auntie Anne’s and Cinnabon are either considering or have already began layoffs.
The Times report noted, "Over the years, the average age of fast-food workers in the U.S. has been rising gradually as many teens have instead sought enrichment jobs to prepare for college. The median age for fast-food workers is now 22.1, according to the Bureau of Labor Statistics."
The law also established a Fast Food Council, which will determine annual minimum wage increases — up to 3.5 percent annually until 2029.
