Business

Gov Newsom: Raising Fast Food Minimum Wage to $20 Pays Off as Jobs Multiply in Industry

Fast food restaurant jobs in California have increased since the state implemented a $20 minimum wage for workers in that industry. Data shows that California has added more than 20,000 jobs in the fast-food industry since the beginning of this year, according to the United States Bureau of Labor Statistics (BLS). 

Published

7 months ago

July 8, 2024

Oakland Post

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By Bo Tefu, California Black Media

Fast food restaurant jobs in California have increased since the state implemented a $20 minimum wage for workers in that industry.

Data shows that California has added more than 20,000 jobs in the fast-food industry since the beginning of this year, according to the United States Bureau of Labor Statistics (BLS).

Gov. Gavin Newsom signed Assembly Bill (AB) 1228 into law in September 2023. The legislation increased the minimum wage for over 745,000 fast food workers to $20 per hour. The bill also facilitated the creation of the Fast Food Council, a group that empowers workers to voice their concerns regarding working conditions, including health and safety standards. The new minimum wage took effect on April 1 this year.

Supporters of the legislation say the bill was implemented to mitigate the loss of jobs in the fast-food industry during the COVID-19 pandemic. The governor acknowledged labor unions for contributing to the state’s economy and helping to protect the quality of life for workers.

“All our progress on higher wages and better benefits for working people – it’s not just about the hourly pay rate. It’s about building a dignified and respectful future where everyone is included in our growth,” said Newsom.

“We are a state that gives a damn about fast food workers – who are predominantly women – working two and a half jobs to get by,” he said.

However, critics argue that the bill would harm franchisees, resulting in job losses. Data released by the BLS contrast statistics published by the California Business and Industrial Alliance (CABIA), which stated that the fast-food industry lost 10,000 jobs. The CABIA stated that the wage increase forced fast food companies to cut labor costs to keep business afloat.