Starting Monday, a new law in California will raise the minimum wage for most fast food workers to $20 an hour. This move aims to provide more financial security to a profession historically known for low pay. The law, passed by Democrats in the state Legislature, recognizes that many fast food workers are adults supporting families, not just teenagers earning extra money.
Immigrants like Ingrid Vilorio, who works part-time at a Jack in the Box, welcome the wage increase. However, some franchise owners have expressed concerns about the law's impact on their businesses. Alex Johnson, who owns Auntie Anne's Pretzels and Cinnabon restaurants, anticipates having to raise prices by 5% to 15% due to the increased labor costs.
Despite fears that raising the minimum wage would lead to job losses, data from the past decade in California show that wages increased without significant employment declines. Labor economics professor Michael Reich from UC Berkeley noted that many larger cities in California already have minimum wage rates higher than the statewide minimum of $16 per hour.
The law, which applies to fast food restaurants with limited or no table service and part of national chains with at least 60 establishments, was a result of negotiations between the industry and labor unions. The law exempts restaurants inside grocery stores and those primarily selling bread. Notably, the law applies to Panera Bread, as it does not make dough on-site.
Overall, the wage increase for fast food workers in California reflects a carefully crafted compromise between industry stakeholders and labor unions, aiming to address wage disparities and improve working conditions in the fast food sector.
