California Implements Last Minute Exemptions to the $20 Fast Food Minimum Wage.

After some confusion regarding the new $20 fast food minimum wage law, California created some last minute exemptions to help clarify which restaurants are required to pay the new minimum wage. However, the last minute exemptions are narrowly tailored, and the new minimum wage likely applies to most fast food restaurants in California. On a practical level, these narrow exemptions will likely have little impact on the cost of labor for employers. For example, if workers are doing the same jobs at both an airport McDonald’s and a stand-alone McDonald’s, there is little incentive for the workers to continue to work at the airport for less pay. Clearly, a pay increase will likely occur across all facets of the fast food industry.

New Year, New Minimum Wage

Minimum wage increases in 22 states. Some of the largest increases for an hour’s worth of work are found in Delaware, Hawaii, Illinois, Maryland, Nebraska, New Jersey, New York, and Rhode Island. These states increased their minimum wage by at least $1 or more, with some topping the charts at an increase of at least $2.00 an hour (i.e. Hawaii and Maryland).

Employers, Employment, Minimum WageKathleenFebruary 21, 2024minimum wage increase, minimum wage, employees, employer

Update: McDonald’s Confirms that California’s $20 Minimum Wage Will Lead to Increase in Menu Prices (and Possibly More Changes).

Fast food franchisees confirm that they will be increasing menu prices to offset the staggering increase in labor costs due to California’s new $20 minimum wage for all fast food workers. However, the California legislature, in establishing California’s new fast food worker minimum wage, may have failed to deliver high wages to California fast food workers. If the menu prices increase significantly, the fast food workers may find that their higher wages do not significantly increase their buying power at their own workplace- and perhaps in other areas of their life. In addition, if fast food franchisees choose to go fully automated and not hire employees, there are no higher wages for these workers because there will be no wages at all.

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.

Ringing in the New Year with Higher Hourly Rates: California’s Statewide Minimum Wage Set to Rise to $15.50 For ALL Employers on January 1, 2023.

Beginning on January 1, 2023, minimum wage is set to increase to $15.50 per hour for all California employers- regardless of size. Small businesses will now be paying employees $1.50 more per hour, which is approximately a 10% raise.

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