1 month ago
California's caller rule boosting nan minimum costs for fast-food workers successful nan authorities to $20 an hr went into effect Monday, impacting restaurants that person astatine slightest 60 locations nationwide, isolated from those that make and waste their ain bread.
Gov. Gavin Newsom signed nan legislation, AB 1228, into rule successful September. In summation to nan salary raises, it besides establishes a "Fast Food Council," including representatives for some workers and employers, that tin o.k. further salary increases and group standards for moving conditions.
Gov. Gavin Newsom signs authorities raising California fast-food workers' minimum costs to $20 an hr astatine SEIU Local 721 successful Los Angeles connected Sept. 28, 2023. (Sarah Reingewirtz/MediaNews Group/Los Angeles Daily News via / Getty Images)
The wide minimum costs for different workers in California is $15.50 an hour, among nan highest of immoderate state. The national minimum wage, which has remained unchanged since 2009, is $7.25 an hour, aliases $15,080 a twelvemonth for an worker moving 40 hours a week.
CALIFORNIA FOOD CHAINS LAYING OFF WORKERS AHEAD OF NEW MINIMUM WAGE LAW
The median fast-food worker successful nan U.S. earned $13.43 an hr successful 2022, while those successful California made an mean of $16.60 an hour, according to nan Bureau of Labor Statistics. The caller minimum equates to an yearly net of $41,600.
Workers and labor unions person celebrated nan caller rule arsenic advancement for workers' rights, pinch supporters arguing galore workers successful fast-food restaurants are not teenagers moving their first job, an image being portrayed by opponents.
RESTAURANT OWNER FEARS CALIFORNIA MINIMUM WAGE LAW IS ‘A SILENT TAX’ ON CONSUMERS, ‘COLLAPSING’ BUSINESSES
But edifice owners person warned nan accrued salary will lead to occupation cuts and higher prices for consumers. Multiple California nutrient chains, including Pizza Hut, Southern California Pizza, Round Table Pizza and Vitality Bowls, announced layoffs pursuing nan law's passage.
Pizza Hut and different fast-food chains fto spell of workers up of nan $20 minimum costs rule that went into effect Monday. (Pizza Hut / Fox News)
"Restaurants are struggling to enactment supra water, and Democrats conscionable threw them an anvil," California Assembly Republican leader James Gallagher told FOX Business. "We warned Democrats this caller instruction would costs jobs. They ignored us, and present we are pinch nan highest unemployment complaint successful nan state poised to get moreover worse."
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FOX Business' Louis Casiano and Reuters contributed to this report.
