The State of California has approved a new law that will raise the hourly minimum wage for fast food restaurant employees to $20 per hour. The fast food law will be effective statewide beginning April 1, 2024.
Democratic Gov. Gavin Newsom made the announcement Thursday (Sept. 29) at an in-person press event in Los Angeles attended by labor unions such as SEIU California and SEIU USWW, along with the Fast Food Council. The new legislation will benefit more than 500,000 fast food employees and fast food chains with at least 60 locations nationwide.
“California is home to more than 500,000 fast-food workers who – for decades – have been fighting for higher wages and better working conditions,” said Gov. Newsom in a statement. “We take one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast food workers a stronger voice and seat at the table.”
Beginning Jan. 2025, the Fast Food Councill will have authority to evaluate and establish minimum wage for fast food employees on an annual basis. The law also removes parent companies from liability regarding business practices of independent franchise operators in the state.
An odd stipulation in the law text states fast food establishments that “produce for sale bread as a stand-alone menu item,” such as that made popular by Panera Bread, will be excluded from the new minimum wage standards.
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The call to increase the minimum wage of fast food workers arose after it was determined by the U.S. Bureau of Labor Statistics that most fast food workers earned about $16.21 per hour, making an average annual income of $34,000.
For a family of four, that’s below the poverty line, according to the Public Policy Institute of California and the Stanford Center on Poverty and Equality. Their data reports one in three Californians have experienced poverty or are nearing poverty. The raise is intended to alleviate the poverty issue, while simultaneously attracting a new generation of employees and more qualified talent.
