Starting April 1, the minimum wage for most fast-food workers in California will jump to $20 an hour — the highest in the U.S.

Starting Monday, most California fast-food workers will earn at least $20 an hour — the highest minimum wage across the U.S. restaurant industry. Yet the pay hike is sparking furious debate, with some restaurant owners warning of job losses and higher prices for customers, while labor advocates tout the benefits of higher wages.

The new law, signed by Governor Gavin Newsom last fall, takes effect on April 1, requiring that fast-food chains with at least 60 locations nationwide pay workers at least $20 an hour. The means the state’s 553,000 fast-food workers will earn more than the state’s $16 minimum wage for all other industries.

The new baseline wage comes as the fast-food industry is seeing booming earnings, with big chains like McDonald’s enjoying strong revenue growth and wider profit margins in recent years. That’s partly due to menu prices that have far outpaced inflation, with fast-food costs surging 47% over the past decade, compared with an average of 29% for all other prices, according to a new analysis from the Roosevelt Institute, a nonpartisan think tank.

  • @Ultragigagigantic
    3•3 months ago

    In California, near me, the closest McDonalds, Panera’s, and Togo’s have adopted kiosk-based ordering, which takes the human out of the ordering loop. None are pure kiosk (at least not yet).

    According to business leaders, this should have lowered the prices heavily, since they say labor costs is such a huge part of the final price right?

    So… did the prices go down?