Governor Gavin Newsom signed Assembly Bill 1228 into law in Los Angeles, which will raise fast-food employees minimum wage to $20 per hour starting in April. This significant wage increase, benefiting over half a million fast-food workers, the majority of whom are minorities and women, was announced during the signing ceremony.
Not all fast food workers are optimistic regarding the financial impact of this new law. Some believe that while the wage hike will help them meet basic expenses and cover rent, it may not significantly change their financial circumstances.
According to a report by the Harvard Kennedy School and UC San Francisco, the average hourly wage for fast food workers in California was $16.21 in the previous year.
The newly signed law will increase the base wages for “quick-serve restaurants” with 60 or more locations to a minimum of $20 per hour. Additionally, it establishes a restaurant industry council responsible for setting future pay raises and advising on working conditions.
This law represents a compromise between various stakeholders. Restaurant owners withdrew a proposed ballot measure that aimed to undo a previously approved law establishing a fast food industry council, while labor advocates shelved a bill that would have linked franchisees’ labor violations to the franchisor corporations.
Governor Newsom noted the challenging negotiations to remove the restaurant industry referendum from the ballot, describing it as a substantial and difficult endeavor.
The law establishes a state-run council for five years, comprising representatives from both business and labor, as well as a member of the public. They will determine wage standards and provide guidance on various aspects, including working conditions, scheduling, and health and safety standards in fast food establishments. Notably, the state’s labor and commerce staff can participate but cannot vote.
The restaurant industry considers the signed law the best possible outcome, as it prevented the need to spend $120 million on the referendum. Matt Haller, president of the International Franchise Association, praised the new law for preserving the franchise business model.
Assemblymember Chris Holden, the author of both the original and compromise legislation, acknowledged the hard work of franchise owners and workers who advocated for the law. He expressed his gratitude to those who tirelessly contributed to the process.
Some workers expressed pride in their collective efforts and the impact they’ve had.
Although the wage increase is welcomed, some workers are more excited about having a voice within the fast food council, despite the council’s reduced authority on certain issues.
For many Californians, $20 per hour does not qualify as a living wage. The Massachusetts Institute of Technology’s living wage calculator suggests that, for a working couple with one child, a living wage would be $23.81 per hour, and for a single adult with no children, it would be $21.24.
Some fast-food employees expressed hope that the fast food industry, will eventually unionize, allowing workers more control over schedules, working conditions, and the ability to address workplace retaliation and wage theft.
The new law, though not a complete solution, represents a significant step forward for fast-food workers, many of whom have long advocated for improved wages and working conditions.
