California Fast-Food Workers to Receive $20 an Hour Under New Legislation

A new legislation will pay most California fast-food workers $20 an hour on Monday, according to the AP. Last year, Democrats in the state Legislature approved the bill to recognize that many of the more than 500,000 fast-food workers are adults supporting their families.

The regulation applies to national chains with at least 60 restaurants that provide minimal or no table service. Bread-only eateries and grocery-store restaurants are excluded.

The trade group representing fast-food franchise owners backed the rule, although many have complained about its effects. Alex Johnson, owner of 10 Auntie Anne's Pretzels and Cinnabon businesses in the San Francisco Bay Area, claimed he would have to hike prices 5% to 15% and is no longer recruiting or opening new sites. I aim to treat my staff well. I pay as much as possible. Johnson claimed this legislation is hurting our business.

In the last decade, California has raised its minimum wage for most workers to $16 per hour. As companies' expenditures rose, several workers were worried about losing their employment. According to University of California-Berkeley labor economics professor Michael Reich, salaries rose and employment did not shrink. How little or hard it was to discover disemployment impacts astonished me. We see good employment benefits "Rich stated.




 

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