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California set to hike wages for fast-food workers to industry-leading $20 per hour (www.cbsnews.com)

submitted 8 months ago by MicroWave to c/news

63 comments fedilink hide all child comments

Starting Monday, most California fast-food workers will earn at least $20 an hour — the highest minimum wage across the U.S. restaurant industry. Yet the pay hike is sparking furious debate, with some restaurant owners warning of job losses and higher prices for customers, while labor advocates tout the benefits of higher wages.

The new law, signed by Governor Gavin Newsom last fall, takes effect on April 1, requiring that fast-food chains with at least 60 locations nationwide pay workers at least $20 an hour. The means the state's 553,000 fast-food workers will earn more than the state's $16 minimum wage for all other industries.

The new baseline wage comes as the fast-food industry is seeing booming earnings, with big chains like McDonald's enjoying strong revenue growth and wider profit margins in recent years. That's partly due to menu prices that have far outpaced inflation, with fast-food costs surging 47% over the past decade, compared with an average of 29% for all other prices, according to a new analysis from the Roosevelt Institute, a nonpartisan think tank.

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[–] Jimmycakes 11 points 8 months ago (1 children)

Maybe they should just try building some dense housing so the people making $20 got some where to live that's not with 3 other people in a house built for 1

[–] Osito 4 points 8 months ago

Can't let good be the enemy of great