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.

  • Smeagol666
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    3 months ago

    Except for Panera who get a cut-out because the CEO is a childhood friend of Gavin Newsom. Like I’ve been saying for years: Democrats are just Republicans draped in a rainbow flag.

    • Brkdncr@lemmy.world
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      3 months ago

      I thought that got scratched out? Either way yes these shouldn’t have targeted exceptions that don’t pass the smell test.

      • admiralteal@kbin.social
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        3 months ago

        It didn’t get scratched out. It was never true in the first place. I don’t know why the bakery exemption was in there – apparently no one who isn’t on a confidentiality agreement does – but Panera apparently never would’ve qualified as one under it. The disinfo game from the right on this was on point.

    • jumjummy@lemmy.world
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      3 months ago

      You know you’re not supposed to stick the Q-tip all the way into your ear, right?