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New California Law Starting on Monday

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McDonald's meets the requirements for the wage increase.
  • Post category:News

A new law is set to begin on Monday, April 1st in the state of California that will affect the wages of many fast food workers statewide. The new law raises minimum wage for employees of fast food restaurants that meet certain requirements. The wage is set to increase from $16 an hour, the current state minimum wage, to $20. The law will affect most major fast food chains and brands. This wage increase is taking action and not without controversy. While many are excited for this increase in pay for many low wage workers, others express concern that this will ultimately lead to higher unemployment rates.

The law passed last year, always having spring of this year as it is official rollout time in mind.

State officials ultimately wrote and passed this bill after a recognition came that many people’s beliefs regarding the people who held these jobs were incorrect. For years, there was always a stereotype that fast food employees were teenagers working their first jobs, in which case many felt the lower minimum wages were always sufficient. However, it is becoming more and more clear that this is not the case. Many employees of fast food restaurants are adults who are working to support families, oftentimes immigrants. Fast food workers The low wages simply are not sufficient, so the state decided to take action to implement some further protections for them.

According to a study, more than 500,000 California fast food employees are not teenagers.

While the workers are celebrating the wage increases, the business owners are struggling to pull together the funding to make the wage increase. One franchise owner in the Bay Area has already said that he will have to lay off some of his staff. He owns 10 Auntie Anne’s Pretzels and Cinnabon restaurants and with his current staff load, the wage increase will cost him $470,000 annually. He already plans to increase the prices, but still expects to struggle, especially as demand and sales have dropped in recent years in his stores. Other business owners have expressed that they are in similar situations.

The law is set to affect only businesses that meet certain criteria. The business must meet the law’s definition of fast food restaurant. This means it must be a limited service business with little to no table service, with food and beverage items purchased before consumption. Additionally, the business must be a part of a chain that has at least 60 establishments nationwide. This means small business owners will be unaffected by the law.

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