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California’s fast food workers are now being paid $20 an hour thanks to the state's minimum-wage law that went into effect Monday, April 1st. The law was signed by California Gov. Gavin Newsom in September 2023 and marks a $4 increase from the overall state minimum wage.
The reforms in California's fast-food industry have the potential to significantly alter the employment landscape for more than 500,000 workers. A significant majority of these employees - approximately 60 percent - identify as Latina/Latino, underscoring the potential impact of the changes on this particular demographic.
The implementation of a new law in California, which guarantees better wages and working conditions for fast-food workers, is a result of years of tireless advocacy by various organizations, including The Fast Food Workers Union and members of the Fight for Fifteen Campaign.
The long-drawn-out struggle for improved pay and working conditions has also resulted in the establishment of a fast-food council. This council is comprised of representatives from both the restaurant industry and the workers' community and has the authority to increase the wage annually for the next decade. The wage increase will be in line with inflation, or up to 3.5%, whichever is higher. This council can also recommend standards for fast-food worker safety and work with existing state agencies to investigate issues like wage theft.
This move is expected to bring relief to countless fast-food workers in California who have been struggling to make ends meet. Although many are hopeful that the increase in wages will allow industry workers more financial security in a historically low-paying profession, others are concerned that it will inflate prices in a state already known for its high cost of living. While California now has the highest guaranteed base salary in the industry, the cost of living still remains approximately 38% higher than the national average.
The new law will provide an opportunity for employees to have a say in the establishment of minimum standards regarding salaries, working hours and workplace conditions for the half-million fast-food workers in California.
It will compel fast-food giants such as McDonald's and Starbucks to work alongside unions and other worker advocacy groups to establish statewide benchmarks, serving as a prototype for a variety of employee groups across the country.
The new rate applies to restaurant chains with more than 60 nationwide locations that are primarily engaged in selling food and beverages for immediate consumption.
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