California’s minimum wage for fast food workers is now $20 an hour Los Angeles Times

Others increased prices and are passing expenses onto consumers, including menu items at restaurants. A new rule that is set to take effect on Monday will pay at least $20 an hour to the majority of fast food workers in California. This will provide greater financial stability to an industry that has historically paid poorly, but it also poses a danger to boost prices in a state where high costs of living are already well-known. A big concern over that time was whether the increase would cause some workers to lose their jobs as employers’ expenses increased.

“It could have this positive impact of increasing wages, where possible, in other non-hospitality fields,” he said. Alex Johnson owns 10 Auntie Anne’s Pretzels and Cinnabon restaurants minimum wages in the San Francisco Bay Area. He said sales have slowed in 2024, prompting him to lay off his office staff and rely on his parents to help with payroll and human resources.

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The Jack in the Box worker Jauregui, 52, has been cobbling together two salaries, working about 54 hours a week between the restaurant and a laundromat. The new state minimum uniquely focuses on a particular segment, fast food, affecting some of the country’s biggest chains, including McDonald’s, Starbucks, Subway and Pizza Hut. Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

Last week, one South Bay restaurant owner told NBC Bay Area he’s not sure if he can afford the wages required by this law. Another complicating factor, Bernick added, is that the fast food industry is already moving towards automation. “I know a good number of employers in these sectors are concerned that their workers will move out of long term care or care of the disabled, and move into fast food where they can — at least currently — earn more,” Bernick said. “But this is one of the first attempts beyond minimum wage to raise wages directly,” he noted. California’s mandatory minimum wage for fast-food workers took effect Monday, with $20 an hour now in place. If you’re a minimum wage worker planning a move to a new state, be sure to consider all of these expenses and factor them into your overall household budget before you hit the road.

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“I was surprised at how little, or how difficult it was to find disemployment effects. She says she’s always trying to save a bit to treat her grandchildren – she has custody of three of them – who are constantly growing out of clothes and shoes. And although she marched alongside fellow SEIU members to win the wage increase, she is fearful of the downside.

A big concern over that time was whether the increase would cause some workers to lose their jobs as employers’ expenses increased. California’s pay hike is a result of a contentious deal struck by labor leaders, including the large Service Employees International Union, and fast-food companies last year. The new wage law applies to fast-food chains with at least 60 locations nationwide, with exemptions for some bakeries and smaller fast-food outposts inside grocery stores, airports and other venues. Parrish said some businesses responded to the incoming wage impact by implementing more automation to their operations.

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In addition to the above chart, employers may find the interactive map below helpful in preparing for these wage and hour changes in the summer and fall of 2022 and in coming years. The map provides the minimum wage rate and applicable tip credits—in addition to employers’ minimum cash wage obligations—for each state and the District of Columbia. Fast-food chains are looking to hike the cost of menu items because they’re required to pay their employees $20 an hour starting Monday. Employers may pay tipped workers a base wage of $7.98 per hour, and the employee is required to report their tips at the end of each evening. If the amount that the employee earned in tips plus the base hourly wage does not add up to at least $11 per hour, the employer must make up the difference.

• The state’s measure continues to draw praise by supporters, who say it aligns with a need to create a “living wage,” and sharp opposition from critics, who say it will have damaging effects on the long-term economy.
• The law reflected a carefully crafted compromise between the fast food industry and labor unions, which had been fighting over wages, benefits and legal liabilities for close to two years.
• With the state’s mandatory minimum wage for fast-food workers set to increase to $20 an hour, many restaurant chains are preparing to raise prices.
• Now, the focus is on cutting costs by simplifying operations, changing how long it takes workers to make sauces, for example, or to close up for the night.
• If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor.
• The previous minimum wage in California, regardless of industry, was $16 an hour — meaning many cashiers, line and prep cooks, counter attendants and baristas will see as much as a 25% raise overnight.