California Implements New Law Raising Fast-Food Worker Minimum Wage to $20 Per Hour
In a groundbreaking move, California has passed legislation that will increase the minimum wage for fast-food workers to $20 per hour starting next year. This law is a significant acknowledgement from the state’s Democratic leaders that these workers, who often go unnoticed, are actually the main breadwinners in their low-income households. Upon its enforcement on April 1, California will have the highest guaranteed base salary for fast-food workers in the entire industry, far surpassing any other state. The state’s minimum wage for all other employees, already one of the highest in the US at $15.50 per hour, will further showcase California’s dedication to workers’ rights.
As Democratic Governor Gavin Newsom signed this groundbreaking law, he was surrounded by exultant fast-food workers and labor leaders in Los Angeles. Newsom dismissed the commonly held belief that fast-food jobs are primarily meant for teenagers seeking an introduction to the workforce. “That’s a romanticized version of a world that doesn’t exist,” he stated. “We have the opportunity to reward that contribution, reward that sacrifice, and stabilize an entire industry.”
Newsom’s approval of this law highlights the immense power and influence of labor unions in California, the country’s most populous state. These unions have made significant efforts to organize fast-food workers in hopes of improving their wages and working conditions. The law also effectively resolves a dispute between labor and business groups over how to regulate the industry. In exchange for higher pay, labor unions have abandoned their pursuit to hold fast-food corporations responsible for the actions of their independent franchise operators in California. This action could have severely disrupted the prevailing business model on which the industry is based. In response, the industry has agreed to remove a referendum related to worker wages from the 2024 ballot.
The moment was overwhelming for Anneisha Williams, a mother of six who currently works at a Jack in the Box restaurant in Inglewood. Holding back tears, Williams expressed her gratitude during a news conference that took place just before Newsom signed the bill. She stated, “They’ve been with me on the picket line, and they’ve been marching with me as well. This is for them.” Newsom’s approval of this law may help him regain favor with organized labor, as he faced intense criticism last week for vetoing a separate bill designed to protect truck drivers’ jobs in light of the advent of self-driving technology.
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Currently, fast-food workers in California earn an average of $16.60 per hour or just over $34,000 per year, according to the US Bureau of Labor Statistics. This amount falls below the California Poverty Measure for a family of four, which takes into account housing costs and publicly funded benefits. The new minimum wage of $20 per hour is merely a starting point. The law establishes a Fast Food Council that possesses the authority to annually raise this wage through 2029 by 3.5%, or according to the change in averages for the US Consumer Price Index for urban wage earners and clerical workers, whichever is lower.
(Read more fast-food industry stories.)
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