Los Angeles

California raises minimum wage for fast-food workers

The nearly five-dollar increase is the first industry-specific minimum wage change for the state.

Photo of the outside of a McDonald's restaurant and the McDonald's sign.
California raised the minimum wage for workers at fast-food places like McDonald's. (Photo by Tamara Almoayed)

Fast-food workers in California will have their wage increased from $15.50 to $20 an hour thanks to a bill signed by Governor Gavin Newson this month. The new minimum wage will go into effect starting in April.

“California is home to more than 500,000 fast-food workers who – for decades – have been fighting for higher wages and better working conditions,” Newsom said at a press conference. “Today, we take one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast-food workers a stronger voice and seat at the table.”

The legislation only applies to restaurants that are a part of a national chain and have over 60 establishments. It is the first industry-specific minimum wage law in the state’s history.

When asked what she thinks about the pay raises, University of Southern California student Solana Espino, a former Chipotle employee, said, “I think there’s been a big movement of unionizing lately … I think this is kind of the work of people coming together within that industry and demanding more pay and demanding to be compensated accurately.”

Gallup polls reported that 71% of Americans now approve of labor unions – the highest percentage recorded since 1965. According to The Guardian, fast-food workers in California have gone on strike over 450 times since 2020 and played a role in the passing of the act.

Another bill, signed the same day, also gives health care workers a higher minimum wage of $25 an hour. However, this won’t go into effect until 2028.

The general minimum wage will also increase from $15.50 to $16 an hour on January 1. California voters will have the option to raise it further, to $18 an hour, in November 2024.

Many feel wage increases are essential in California given that it is the second most expensive state to live in, according to Business Insider. Los Angeles also has the sixth highest cost of living in the nation, according to CNBC.

According to the U.S. Department of Agriculture Economic Research Service, fast food costs have been rising at a historic level. Many students who rely on fast food for an affordable meal are concerned that franchises might respond to the wage increase by increasing menu prices even more.

“If the price increase was drastic, I would probably go less,” Stefan Reginelli, a freshman studying communications said. “Fast food is something that a lot of people crave … so they would pay a somewhat premium for it in this case … I would probably still buy it every once in a while.”

Others, like Espino, feel that fast food is more about speed and convenience, and less about the price.

“I probably still would [buy fast food] because it’s really just the convenience of it more than anything,” Espino said. “The fast-food industry really drives … to just be as quick as possible, as efficient as possible. I definitely would still be going, but I don’t know if I would be going as frequently.”