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By Aliss Higham
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Fast food workers in California could soon get a rise in the minimum wage.
Why It Matters
A boosted minimum wage for food workers first came into place in the Golden State in 2024, and was not without its detractors. Big chains have said that it is damaging their industry, leading to price rises and job cuts, while workers have celebrated the increased wage.
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What To Know
Fast-food workers in California belonging to a chain with 60 or more locations nationwide are covered by a minimum wage requirement of $20 per hour, which could soon rise by 70 cents.
California's Fast Food Council, which consists of fast-food workers, restaurant owners and state officials, approved a motion at the end of February to consider a cost-of-living-adjustment at an upcoming meeting. This may take place in April or May, according to a report by Reuters.
Newsweek has contacted the council for comment via email outside or regular working hours.
The council has existed since last April, when the first minimum wage hike specifically for the sector was effected after being approved by Governor Gavin Newsom, and is authorized to boost the wage annually by up to 3.5 percent, based on inflation.
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Research on the impact of the wage increase is varied. A report commissioned by businesses from the Berkeley Research Group found that the law had led to a 14.5 percent increase in prices. But according to a study by University of California Berkeley's Institute for Research and Labor Employment, the wage boost increased menu prices by only 1.5 percent.
The special rule for fast-food workers means they already get more than the state minimum wage, which is $16.50 per hour for 2025. The federal minimum wage is $7.25 per hour, and has not changed since 2009.
Getting $20 per hour, while more than 20 percent higher than the state's regular minimum wage, is still far from what the average single Californian without children needs to make ends meet. This is according to the Massachusetts Institute of Technology, which says a single adult with no children needs to make $28.72 every hour to support themselves adequately. One adult with two children needs to make more than triple the fast-food wage—$64.17—to make ends meet.
What People Are Saying
A spokesperson for the International Franchise Association, which represents franchises, said in August 2024: "Every day you see headlines of restaurant closures, employee job losses and hours cut, and rising food prices for consumers. Local restaurant owners in California are already struggling to cope with the $20/hour wage, as the Fast Food Council considers additional wage increases. All the while, workers and consumers are feeling the pinch."
Governor Newsom said when the wage increase was signed into law in September 2023: "California is home to more than 500,000 fast-food workers who—for decades—have been fighting for higher wages and better working conditions. Today, 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."
What Happens Next
The Fast Food Council's next meeting is expected to take place in April or May.
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