When does the new $20 per hour minimum wage law begin in California?
Fast food workers in California will see the minimum wage rise to $20 an hour in their industry. When does the increase go into effect?
Thanks to a recent law passed in the California legislature, the minimum wage for fast food workers will rise to $20 an hour to help workers keep up with the state’s high cost of living. According to the Bureau of Labor Statistics, there were around 540,000 fast food workers in the Golden State earning an average wage just above $16 an hour in May 2022. The law will raise wages across the board, as the highest ninety percent of earners in the industry were only earning $18.53 an hour.
The minimum wage is a floor from which businesses build their pay scale. Typically, not all workers earn the minimum wage, as businesses argue that they factor work experience into the pay offered to their employees. Additionally, managerial roles are compensated at higher rates because of their additional responsibilities. These variations in pay that existed before the law went into effect imply that many who had earned less than $20 an hour but more than the average for the sector will be making over the new minimum when the law goes into effect. Only time will tell, but the new law is an opportunity to test the theory that increasing the minimum wage has ripple effects that lead to higher wages for workers across pay scales, not only those who earn the least.
When does the law go into effect?
On 1 April 2024, fast food workers in California will see the new law go into effect. At a celebration to commemorate the passage of the law, California Governor Gavin Newsom recognized that fast-food workers “have been fighting for higher wages and better working conditions” for decades.
“Today, we take one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast-food workers a stronger voice and seat at the table,” said Gov. Newsom.
What other effects will the law have?
In addition to the minimum wage increase, the new law establishes a Fast Food Council within the Department of Industrial Relations. This council will be responsible for “creating a process to develop minimum fast food restaurant employment standards related to wages, working conditions, and training.” Each year, the council will be able to increase the minimum wage to adjust for inflation to protect the purchasing power of these workers.