Employers Cope with the Implementation of California’s $20 Fast Food Minimum Wage.

California’s mandatory $20 minimum wage for fast food workers is already changing the way fast food chains operate. Business owners could have predicted the immediate outcome of California’s infamous $20 fast food minimum wage: rapidly rising prices of fast food and the mass layoff of fast food workers was no surprise. The fallout in the California fast food industry has begun and we are only seeing inklings of the fast food industry’s future. For fast food restaurants and their owners, the simultaneous increase in the 1) worker’s hourly rate, 2) manager’s salary, 3) price of menu items, and 4) price in groceries can be a difficult (if not fatal) balancing act.

California’s $20 Fast Food Minimum Wage is in Effect NOW and Applies Broadly to Most Fast Food Chains.

Most people are aware of California’s new $20 fast food minimum wage, but some are uncertain whether or not the minimum wage increase applies to their particular restaurant or shop- especially in light of the last minute exemptions signed into law. The phrases “fast food restaurant employee,’ “limited-service restaurant,” and “establishment” are defined in the new law. It is important to be certain whether or not your restaurant is required to pay broadly reaching $20 minimum wage or if you may fall into an exemption, which is discussed in a later blog.

California's Controversial and Unprecedented New Law Creates "Selective" Minimum Wage For Fast Food Workers and Council to Oversee Franchise Owners.

California has enacted a new law that creates a “selective” minimum wage by creating a minimum wage only for fast food workers. In the span of less than seven months, California fast food workers will receive a $4.50 per hour pay increase. In January of 2024, all other California employees working for minimum wage will receive a pay increase of a mere $0.50 per hour. Fast food employees are clearly receiving a windfall, and fast food employers will now be forced to deal with added rules, regulation, and oversight due to the creation of the fast food council.

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