California Sets New Minimum Wage Record for Fast Food Workers

Fast food workers in California are about to see a substantial boost in their paychecks. Starting next year, they will receive a minimum wage of $20 (£16.36) per hour, marking a historic moment in the industry. The previous minimum hourly rate of $15.50 (£12.68) was already one of the highest in the nation, but this increase is set to make it the industry leader.

In comparison, last year, the average fast food worker in the United States earned $13.43 (£10.99) per hour.

The announcement was met with cheers and tears from fast food workers as California Governor Gavin Newsom signed the bill. He adamantly dispelled the notion that fast food jobs are only for inexperienced teenagers, stating, “That’s a romanticized version of a world that doesn’t exist. We have the opportunity to reward that contribution, reward that sacrifice, and stabilize an industry.”

This new minimum wage will come into effect in April and applies to restaurants with at least 60 locations nationwide. For a full-time worker, this translates to an annual salary of $41,600 (£34,000), benefiting the approximately 550,000 people employed across 30,000 fast food outlets throughout the state.

Furthermore, a newly established council will have the authority to increase the hourly rate by a maximum of 3.5% annually until 2029.

California lawmakers are not stopping with fast food workers. They have also passed a bill that aims to gradually raise the minimum wage for healthcare workers to $25 (£20.46) per hour. Meanwhile, the federal minimum wage in other sectors remains unchanged at $7.25 (£5.93) per hour since 2009, resulting in an annual income of $15,080 (£12,340) for someone working 40 hours per week.