California’s new minimum wage in April 2024: How much it rises and who will get it

Within a few months, over half a million workers California An increase in the minimum wage would benefit That would exceed the state minimum, which rose to $16 an hour on Jan. 1.

It was signed by state governor Gavin Newsom in late September last year The new law favors more than 500,000 workers in the fast food industry.

New minimum wage will benefit fast food workers Restaurants with at least 60 locations nationwide, with the exception of establishments that make and sell their own bread, such as Panera Bread.

How much will the minimum wage increase in the fast food industry?

The law will come into effect from April 1, 2024. Once this passes, fast food workers in California will have the highest guaranteed base wages in the industry: $20 dollars per hour.

Besides, This salary can increase every year. The Act provides for the creation of a nine-member Fast Food Council composed of representatives of the restaurant industry and its workers.

The council will have the power to raise the minimum wage every year until 2029. The increase will be 3.5% or based on the change in average of consumer price index For urban wage earners and administrative workers (CPI-W), whichever is lower.

It may interest you: These 10 cities have the highest minimum wages in the United States

Fast food chains prepare to raise prices

To offset higher labor costs due to raising the minimum wage to $20,Some companies will choose to increase the prices of their products or services, as well as invest in automation, Lor will result in a reduction in the number of employees.

McDonald’s and Chipotle are two fast food chains that have announced they will charge more in the Golden State. other side, Some Pizza Hut owners have decided to opt for layoffs.

Packpizza and Southern California Pizza Company, two franchisees in the Pizza Hut structure, It announced layoffs of about 1,200 workers, effective this monthTwo months before the law comes into effect.

“PacPizza, LLC, doing business as Pizza Hut, has made the business decision to eliminate in-house delivery services and, as a result, eliminated all delivery driver positions,” shared in a statement Business Insider.