However, the Fair Labor Standards Act protects residents in these states with the federal minimum wage. In states where the minimum wage is less than $7.25, residents are protected by the federal minimum wage law. With few exceptions, minimum wages employers in these states must pay each employee a minimum of $7.25 per hour. For example, California has a statewide minimum wage of $15.50 per hour, but several cities within California have higher minimum wages.
That includes immigrants like Ingrid Vilorio, who said she started working at a McDonald’s shortly after arriving in the United States in 2019. “I am used to being a champion of labor and I’m in this odd position,” says Michaela Mendelsohn, a longtime advocate for LGBT workers and also owner of six El Pollo Loco restaurants with about 170 employees. One big Pizza Hut franchisee in California cited the upcoming wage hike as a reason for laying off more than 1,000 delivery drivers in a shift to delivery apps like Uber Eats and DoorDash. It’s a big win for cooks, cashiers and other fast-food workers – some of the lowest-paid jobs in the U.S. – whose wages have been growing at a faster clip since the pandemic, after decades of stagnation. Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. The National Law Review is not a law firm nor is intended to be a referral service for attorneys and/or other professionals.
Higher prices on the menu as fast-food chains brace for California’s big minimum wage jump
The law reflected a carefully crafted compromise between the fast food industry and labor unions, which had been fighting over wages, benefits and legal liabilities for close to two years. The law originated during private negotiations between unions and the industry, including the unusual step of signing confidentiality agreements, KCRA 3 first reported. The law originated during private negotiations between unions and the industry, including the unusual step of signing confidentiality agreements. Starting Monday, qualifying fast food workers in California must be paid a minimum wage of $20 an hour. This is due to a new state law which emerged from a deal between the fast food industry and union leaders. Over the past decade, California has doubled its minimum wage for most workers to $16 per hour.
Other chains plan to speed up their use of automation, including kiosks and robots. A major Pizza Hut franchisee cited the wage hike as the reason for layoffs of more than 1,000 delivery drivers this year, in a switch to apps like Uber Eats and DoorDash that pushes more delivery fees onto shoppers. In September 2023, Florida employees earning minimum wage will see an increase in their hourly wage from $11 to $12, part of an overall plan to move the Sunshine State towards a $15 minimum wage. It stems from a constitutional amendment passed last year to increase the state’s minimum wage by $1 every year starting in 2022, to reach $15 an hour by Sept. 30, 2026.
With fewer options, South L.A. braces for bigger bills at fast-food restaurants
That’s “a small percentage increase, but this is a really big one … Businesses have had time to react to this, so they knew it was coming,” he added. A decade ago, Jamie Bynum poured his life savings into a barbecue restaurant now tucked between a Thai eatery and a nutrition store in a Southern California strip mall. If you believe you’re covered by this law but aren’t being paid accordingly, the Department of Industrial Relations notes you do have the option to file a claim through the state Labor Comissioner. But on the other side of the coin, Bernick noted, this change might also drive wage competition. Bernick believes it will take some time to clarify the gray areas in the new law. However, there are quite a few exceptions to this law and plenty of confusion about which workers will be covered.
Now, she works about eight hours per week at a Jack in the Box while working other jobs. The staffing, he said, has become harder in recent years, as the state’s minimum wage has steadily increased since 2017, often rising by a dollar per year. The previous minimum wage in California, regardless of industry, was $16 an hour — meaning many cashiers, line and prep cooks, counter attendants and baristas will see as much as a 25% raise overnight. Employees who earn tips — like waiters and bartenders — have a different minimum wage than most of the state because their tips are used to calculate hourly earnings. Unfortunately for minimum wage employees, this change will not go into effect on Jan. 1.
New $20 minimum wage for fast food workers in California set to start Monday
He trimmed expenses wherever possible leading up to the wage increase, including employee hours, and raises prices on some menu items. Wings, he said, have shot up 25% and prompted a price increase at his Island Wing restaurant. The pay increase established by Assembly Bill 1228 applies to California fast food workers employed by any chain with more than 60 locations nationwide and covers corporate-owned and franchised locations.
- A big concern over that time was whether the increase would cause some workers to lose their jobs as employers’ expenses increased.
- All this makes California’s wage hike a high-profile case study for how exactly a higher minimum wage reverberates through the local economy.
- According to data from the Bureau of Labor Statistics from May of 2022, the more than 540,000 fast food workers and cooks in California earned an hourly mean wage of about $16.60 an hour.
- Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here.
- That includes immigrants like Ingrid Vilorio, who said she started working at a McDonald’s shortly after arriving in the United States in 2019.
Bloomberg News reported the change would benefit Greg Flynn, a wealthy campaign donor to Newsom. But the Newsom administration said the wage increase law does apply to Panera Bread because the restaurant does not make dough on-site. Also, Flynn has announced he would pay his workers at least $20 per hour. Plus, Reich said while the statewide minimum wage is $16 per hour, many of the state’s larger cities have their own minimum wage laws setting the rate higher than that.
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