California Increases Minimum Wage for All Fast Food Workers to Highest in US — How Much Other States Pay
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Josephine Nesbit
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Maria Concepcion
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California Governor Gavin Newsom signed a bill into law that raised the minimum wage of fast food workers across the state to $20. Under the new AB 1228 legislation, or Fast Food Franchisor Responsibility Act, fast food employees in the Golden State have the highest guaranteed base in the industry nationwide, Moneywise reported.
The National Owners Association (NOA), representing over 1,000 McDonald’s franchise owners, says the new law is “draconian” and costly to franchisees.
“The new ‘AB 1228’ legislation has been voted into law and will result in a devastating financial blow to California McDonald’s franchisees at a projected annual cost of $250,000 per McDonald’s restaurant,” the NOA said in a memo obtained by Fox Business. “These costs simply cannot be absorbed by the current business model.”
In addition to raising the minimum wage for fast food workers to $20 per hour, AB 1228 applies to restaurants with at least 60 locations nationwide, except those that make and sell their own bread. It would also create a 10-person council to govern fast-food chains, set guidelines for wages and make recommendations regarding working conditions.
The group claims that 95% of California’s 1,300 McDonald’s restaurants are owned and operated by small business owners, added Moneywise.
California’s new minimum wage for fast food workers is almost $5 higher than the state’s minimum wage of $15.50, reported Moneywise, and nearly $13 higher than the federal minimum wage of $7.25. The average fast food worker in the U.S. makes $24,424 as of the end of September, per data from Salary.com, but the range lies between $22,088 and $28,221.
However, these numbers can vary by state and city.
For example, fast food workers in Monroe, Louisiana, make an average of $21,996 per year, while workers in the District of Columbia make an average of $27,189. Washington, D.C., has the highest minimum wage in the country, which was raised to $17 per hour for all non-tipped workers.
According to a press release from Newsom’s office, fast food workers in San Francisco made an average of $30,530 per year as of September, but this salary will increase in April next year.
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