California’s minimum wage hike for fast food workers has sparked much controversy since it went into effect on April 1. Now, workers left out of sector-specific wages approved by the state are wondering what happens to them.
Rise of 25%
Fast food workers in California now earn $20, a 25% increase from the previous state minimum of $16. Other workers are demanding wage increases because they face the same challenges in living costs, with many asking for the state minimum wage to be $20 for all.
The impact of inflation
Prices in the Golden State have risen approximately 20% since 2020, according to the California Legislative Analyst’s Office. The Bureau of Labor Statistics confirmed that prices in California have increased slightly more than in the rest of the US. California and Hawaii experienced higher inflation compared to the rest of the country.
Fast food chains raised prices
Before the new minimum wage hike went into effect, California’s fast food restaurants increased prices by 7% on average. Despite the slowdown in inflation, prices in the Golden State are still high and not going anywhere. That sparked other union workers to demand an increase in their wages.
Everybody deserves $20
Saru Jayaraman, president of One Fair Wage, told the LA Times that lawmakers must understand that if fast food workers deserve wage hikes, so do the other workers. One grocery worker, who makes $16.35 per hour, told the outlet that his wages are not enough, especially for those trying to support families.
Calls for $20 statewide law
Jayaraman led workers to the Capitol earlier, asking for a statewide $20 minimum wage. She acknowledged that it might be a challenge for business owners who are already struggling. However, fast food workers are not the only ones with raises. Most healthcare workers are set to get a raise from $15.50 to $25 per hour, though this increase will happen gradually until 2026.
Those left behind
Among those who make the lowest wages in California are some educators, retail workers, and restaurant employees. Some are considering leaving their jobs to enter the fast food industry because, as Jayaraman said, living off the current wages is impossible.
Leaving it up to Californians
The good news for all California workers is that they will be able to vote on a new measure: a $18 statewide wage. The proposal will be on the ballot during the general elections in November 2024. If voted in, the new measure would likely go into effect by 2026.
High wages and high cost of living
Californians already have some of the highest wages in the US, far above the $7.25 federal wage, which has not increased in 15 years. However, California also has a vast number of most expensive cities. San Diego, Los Angeles, San Francisco, and San Jose are among the 15 priciest cities in the US.
Minimum wages vs. living costs
The state’s minimum wage is around $33,000 annually. However, the federal data shows that the cost of living is around $53,000. That’s why unions are fighting for wage increases, and some are going beyond the proposed $18.
Hotel workers are asking for a $25 hourly
Hotel, janitorial, and event center workers recently gathered in San Diego to demand wage increases. They asked the San Diego City Council for a $25 per hour minimum wage. Hotel workers justified their demands by sharing that the pandemic cuts left many overworked.
LA hotel workers reached an agreement
LA hotel workers’ new agreement includes a $35/hr wage for room attendants and $41/hr for top chefs. Additionally, those who get tipped will gain more days off and double pay for holidays, vacations, and sick days for tipped workers in 46 hotels.
Meanwhile, the fast-food industry is adjusting
Fast food chains are combining reducing hours and implementing new technologies, like self-serving kiosks, and reportedly, around 10,000 workers lost their jobs after the bill was signed in September 2023. Some restaurants opted to lay off drivers and switched to app-based food delivery services.
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