California Passes Higher Minimum Wage for Fast Food Workers, Now One of the Highest Minimum Wage Salaries in US

California fast food workers scored a massive victory after Governor Gavin Newsom signed the law that would raise the California minimum wage for fast food workers to $20 per hour. This rate is now considered one of the highest in the US.

Fast food workers are often the primary earners for their low-income households, according to the Associated Press. This brings much relief to such households as inflation has greatly affected many of them.

The law is expected to take effect on April 1 of next year. It has been noted that California already has a $15.50 per hour minimum wage for all other workers and is also considered among the highest in the United States. This new $20 minimum wage will make those salary rates even higher.

Governor Newsom signed the law on Thursday amid cheers from workers and labor leaders during a labor event in Los Angeles. There, he dismissed the popular notion that jobs in the fast food industry are usually meant for teenagers having their first experience in the workforce. He acknowledged that, in reality, many of the people working for fast food restaurants are breadwinners and adults.

"That's a romanticized version of a world that doesn't exist," he said as he signed the bill into law. "We have the opportunity to reward that contribution, reward that sacrifice, and stabilize an industry."

The new law will settle a fight between business groups and labor groups regarding how to regulate the industry, at least for now. Since they are getting higher pay, labor unions have dropped their lawsuit that sought to make fast food corporations "liable for the misdeeds of their independent franchise operators" in California.

In response to workers dropping their lawsuit, fast food restaurants agreed to pull a referendum related to worker wages from the ballot in 2024. Newsom himself helped broker the deal between the two sides.

New California Law Also Sets up Council To Oversee Increases in Fast Food-Related Minimum Wage

The new law also created a nine-person council that will decide on future wage hikes for the fast-food industry within the state from 2025 through 2029.

According to CNBC, this 9-member council will be appointed and have four representatives from the fast-food industry and four people representing the workers. One neutral party will be serving as the chairman.

It will have the authority to raise the hourly minimum wage annually. This will be based on whichever is lower, 3.5%, or the annual change in the consumer price index.

Fast Food Industry Tried to Lobby Against California Minimum Wage Increase

Records in California showed that several big fast food conglomerates tried to oppose the legislation, even spending money on California legislators in an attempt to block the bill.

The conglomerates that spent money to oppose raising the minimum wage included Chipotle Mexican Grill, Chick-fil-A, Yum Brands, and Restaurant Brands International.

McDonald's US President Joe Erlinger also publicly attacked the bill and called it "lopsided and "ill-considered."

According to Axios, the fast food industry initially succeeded in putting the law on hold, but workers got them to come to the negotiating table to hammer out a compromise. Both sides are now calling the law's passing a big win for their side.

This article is owned by Latin Post.

Written by: Rick Martin

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