California Gov. Gavin Newsom signs law to raise minimum wage for fast food workers to $20 per hour
Published 11:10 am Thursday, September 28, 2023
SACRAMENTO, Calif. — California fast-food workers will be paid at least $20 per hour next year under a new law signed Thursday by Democratic Gov. Gavin Newsom.
When it takes effect on April 1, fast food workers in California will have among the highest minimum wages in the country, according to data compiled by the University of California-Berkeley Center for Labor Research and Education. The state’s minimum wage for all other workers — $15.50 per hour — is already among the highest in the United States.
Cheering fast-food workers and labor leaders gathered around Newsom as he signed the bill at an event in Los Angeles.
“This is a big deal,” Newsom said.
California’s fast-food workers earn an average of $16.60 per hour, or more than $34,000 per year, according to the U.S. Bureau of Labor Statistics. That’s below the California Poverty Measure for a family of four, a statistic calculated by the Public Policy Institute of California and the Stanford Center on Poverty and Equality that accounts for housing costs and publicly funded benefits.
In California, most fast-food workers are older than 18 and the main providers for their family, according to Enrique Lopezlira, director of the University of California-Berkeley Labor Center’s Low Wage Work Program.
The $20 minimum wage is just a starting point. The law creates a fast-food council that has the power to increase that wage each year through 2029 by 3.5% or the change in averages for the U.S. Consumer Price Index for urban wage earners and clerical workers, whichever is lower.
The raise takes effect on April 1 and applies to workers at restaurants that have at least 60 locations nationwide — with an exception for restaurants that make and sell their own bread, like Panera Bread.