It will go into effect in April – Minimum annual earnings will reach $41,600
The workers in fast-food restaurants) in California will earn at least $20 an hour and have a say in setting workplace standards, the new law signed Thursday by Gov. Gavin Newsom provides.< /p>
The legislation emerged as part of a broader compromise in which fast-casual restaurant chains agreed to scrap a 2024 referendum to repeal a law aimed at raising wages and improving working conditions for employees. For their part, unions have agreed to drop their claims for franchisors to be held accountable for violations by franchisees.
On average, the hourly wage of a quick service restaurant worker in the US was $13.43 in 2022, but in California it was $16.60. The hourly minimum wage, which will go into effect in April, translates into annual earnings of $41,600.
As Governor Newsom said, in California today there are more than 550,000 workers in 30,000 quick service restaurants. In the majority of them, they represent the main source of income for their families – contrary to the prevailing perception that these are mainly teenagers taking their first steps in the labor market, Newsom underlined. 80% come from minority groups, while 2/3 are women, he added.
As well as raising the minimum hourly wage, the new law establishes a commission – representing both employers and workers in the sector – that can approve further increases and set standards for working conditions, which unions have hailed as historic move.
On average, the minimum hourly wage regardless of industry is $15.50 in California and is among the highest in the entire U.S.. At the federal level, the minimum hourly wage has remained unchanged since 2009 at $7.25 – which translates into annual earnings of $15,080 for a worker working 40 hours per week.
source: newsbeast.gr
