Minimum Wage for Fast Food Workers in California

The minimum wage for fast food workers in California will have an increase as of April 1st.

The minimum wage for fast food workers in California will be at least $20 an hour as of April 1st.

This new law will give more financial security to a historically low-paying profession that threatens to drive up prices in a state already known for its high cost of living.

Democrats in the state Legislature passed the law last year, in part recognizing that more than the 500,000 people working in fast-food restaurants are not teenagers just looking to make a few bucks but adults with the responsibility of supporting their families.

The minimum wage for fast food workers in California includes immigrants who have been working in the industry for many years.

The minimum wage for fast food workers in California was part of a law supported by the trade association representing fast food franchise owners.

But, since it was passed, many of them have lamented the impact it could have, especially as California’s economy has slowed.

Minimum Wage for Fast Food Workers in California: Consensus

Over the past decade, California has doubled its minimum wage for most workers to $16 an hour.

A major concern throughout this time was whether the hike would cause some workers to lose their jobs as employers’ costs increased.

The law reflected a carefully crafted compromise between the fast food industry and the unions, which had been fighting over wages, benefits and legal liabilities for nearly two years.

The law originated during private negotiations between the unions and the industry, including the unusual step of signing confidentiality agreements.

The law allowing a higher minimum wage for fast food workers in California applies to restaurants that offer limited or no table service and are part of a national chain with at least 60 locations nationwide.

Restaurants that operate within a grocery establishment are exempt, as are those that produce and sell bread as a stand-alone menu item.

Starting Monday, about half a million fast food workers in California will earn at least $20 per hour, $4 more than the state’s general minimum wage.

The new rate applies to restaurant chains with more than 60 locations nationwide, and is the result of a years-long struggle by workers to establish better wages and working conditions, specifically in California’s fast food sector.

The law also creates a fast food council, the first of its kind in the United States, with representatives from both the restaurant industry and workers, to raise wages annually for the rest of the decade, at the rate of inflation or up to 3.5%, whichever is greater.

This council can also recommend safety standards for fast food workers and collaborate with existing state agencies to investigate problems such as wage theft.

Alex Johnson owns 10 Auntie Anne’s Pretzels and Cinnabon restaurants in the San Francisco Bay Area. He said sales slowed in 2024, leading him to lay off his office staff and have to rely on his parents to help him with payroll and human resources.

Increasing his employees’ salaries will cost Johnson about $470,000 each year. He will have to raise prices by 5% to 15% at his stores and will no longer hire or seek to open new locations in the state.