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Minimum Wage Increase in California for Fast-Food Workers Starts Today
April 1, 2024
California fast-food workers can now enjoy a minimum wage increase of over $20 per hour as of April 1, 2024.
CNBC reports chain restaurants with more than 60 national locations can earn $20 an hour. This increase exceeds the state’s general minimum wage of $16 per hour.
This pay increase comes on the heels of a law passed in September. More than half a million fast-food workers will benefit from the rise. The law also creates a nine-person council that will decide on future wage hikes for the fast-food industry in California through 2029.
While this increase will effectively help those who work at these chain restaurants by providing them with a fair living wage for their services, the bill has its critics. According to The Washington Examiner, when the minimum wage increases, that bonus must come from somewhere.
They cite three places where the increased cash flow to workers could come from. First is higher consumer prices. The second is reduced labor costs in other areas, including fewer workers, fewer hours, and reduced benefits. The third and final place is achieved through lower profits and capital expenditures. There could also be cutbacks on other fronts, including reducing workers such as delivery drivers and issuing a hiring freeze.
NewsNation spoke to Scott Rodrick, the owner of over a dozen McDonald’s locations in California. Rodrick shared his thoughts on the minimum wage increase.
“Restaurants are going to look at every possible way to survive post-April 1 relative to this huge impact to their profit and loss statement. And so obviously, one of the levers that a small business has to pull, in terms of that path to survivability, is to take price. But frankly, especially in my case, I can’t charge $25 for a Happy Meal,” Rodrick said.
He concluded that “a fair wage for one should be a fair wage for all, whether you work in McDonald’s, whether you work in the bookstore next door, whether you work at the gas station down the street.”
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