California's $20 minimum wage for fast-food workers goes into effect

California's $20 minimum wage for fast-food workers goes into effect.

Governor Gavin Newsom signed AB 1228 into law in September, which not only mandates pay raises but also establishes a "Fast Food Council" comprising representatives for both workers and employers. This council has the authority to approve additional pay increases and set standards for working conditions.

California's overall minimum wage for non-fast-food workers is $15.50 per hour, one of the highest in the country. In contrast, the federal minimum wage has remained at $7.25 per hour since 2009, equivalent to $15,080 annually for a full-time employee.

According to the Bureau of Labor Statistics, the median hourly wage for fast-food workers in the U.S. was $13.43 in 2022, while in California, it averaged $16.60. With the new minimum, fast-food workers in California can expect an annual salary of $41,600.

Advocates for workers' rights and labor unions have hailed the new law as a step forward, arguing that many fast-food workers are not teenagers starting their first job, as opponents suggest.

However, restaurant owners have expressed concerns that the higher wages will lead to job losses and increased prices for consumers. Several California food chains, including Pizza Hut, Southern California Pizza, Round Table Pizza, and Vitality Bowls, have announced layoffs following the law's enactment.