Fast-food workers in California are set to earn a groundbreaking $20 per hour under a new bill introduced in the state legislature. The bill aims to resolve the ongoing wage and working conditions dispute between the industry and labor unions.
The impact of this legislation is significant for workers who have long been advocating for better pay. Maria Hernandez, an employee at a Jack In the Box restaurant in Folsom, has been working there for five years and is expecting a child next month. She expressed her struggle with the rising cost of living, stating that the wage increase would greatly help her provide for her child’s needs.
California already has one of the highest minimum wages in the country, at $15.50 per hour. However, the bill proposes increasing the minimum wage to $20 per hour for fast-food workers in restaurants with at least 60 locations nationwide, excluding establishments that produce and sell their own bread, such as Panera Bread.
Mary Kay Henry, from the Service Employees International Union, emphasizes the significance of this achievement for fast-food workers nationwide, stating that their struggle is inspiring working people across the country to demand better pay, training, benefits, and protection.
The bill is expected to impact approximately 500,000 fast-food workers in California. It is worth noting that specific industries having minimum wage requirements is not unprecedented. For instance, Minnesota established a council to set wages for nursing home workers, and Colorado announced a $15 minimum wage for direct care workers in home and community-based services in 2021.
Raising the minimum wage can have both positive and negative effects on the economy. While higher wages tend to increase salaries across different sectors, they can also lead to higher inflation and increased prices for goods and services. The economist Sung Won Sohn explains that labor costs can explain about two-thirds of changes in consumer prices.
The fast food industry’s structure, with independent owners operating franchises under large corporations, has made it challenging for governments to regulate and labor unions to organize. In response, California created a Fast Food Council, but the law establishing it was put on hold due to a referendum initiated by the industry. However, labor unions sponsored legislation to hold fast food companies accountable for the actions of their franchise operators, leading to an agreement between the business groups and unions.
For the bill to become law, it needs to be approved by the state legislature and signed by Governor Gavin Newsom. If passed, the bill would establish a starting point wage of $20 per hour, with the Fast Food Council given the authority to increase it annually based on factors like the consumer price index.
The introduction of this bill reflects the ongoing efforts to address income inequality and improve working conditions for fast-food workers in California. It remains to be seen how the legislation will progress, but it highlights the importance of workers’ rights and fair pay in the fast-food industry.
