SACRAMENTO, CA, Sept 28 – California Governor Gavin Newsom has officially signed a bill into law that will raise the minimum wage for fast food workers to $20 per hour. This move places California’s fast food workers among those with the highest minimum wages in the entire country. The law, set to take effect in April, is a result of the persistent efforts of fast food workers and labor unions in California, who have been organizing numerous strikes in recent months to advocate for better wages and improved working conditions.
During the signing of the bill, Governor Newsom emphasized the significance of this legislation while being surrounded by workers and labor leaders. He referred to it as a “big deal”, highlighting the substantial impact that it will have on approximately 557,000 individuals employed in fast food establishments across the state. Moreover, he highlighted that a significant portion of these workers, around 80%, are people of color, with two-thirds of them being women. Many of these individuals are also the primary breadwinners in their families. Newsom expressed his gratitude for their contributions and sacrifices, while also acknowledging the opportunity to bring stability to the fast food industry through this bill.
It is important to note that California’s current minimum wage for most other occupations stands at $15.50 per hour, already among the highest in the United States. However, the new legislation will further increase the minimum wage to $16 on January 1, 2021. Prior to this bill, fast food workers were earning an average hourly wage of $16.60, equivalent to approximately $34,530 per year, according to data from the U.S. Census Bureau of Labor Statistics. Despite this figure being higher than the national average for fast food workers, it fell below the California poverty line, which is estimated to be around $36,900 for a family of four, according to a study conducted by the Public Policy Institute of California and Stanford Center on Poverty and Inequality.
In addition to the wage increase, the law also establishes a fast food council that will have the authority to further raise the wage each year until 2029. The annual increase will be either 3.5% or the change in averages for the U.S. Consumer Price Index for urban wage earners and clerical workers, whichever is lower, as reported by The Associated Press. This measure aims to ensure that the minimum wage keeps up with the cost of living.
It is worth mentioning that the bill will apply to fast food workers in restaurants that have at least 60 locations nationwide. However, there is an exemption for restaurants like Panera Bread that produce and sell their own bread. The implementation of this legislation marks a significant step forward in supporting the livelihoods of fast food workers and enhancing the overall conditions within the industry.
