LOS ANGELES, CALIFORNIA: California Governor Gavin Newsom found himself in hot water after signing a new law that would raise the minimum wage for fast food workers to $20 per hour next year.
"The future happens here first, California," the 55-year-old politician said as he signed the bill amid a throng of cheering workers and labor leaders at an event in Los Angeles on Thursday, September 28, 2023.
The governor later celebrated the bill with a tweet in which he wrote, “Fast food workers in CA will now be paid the highest minimum wage of any state in the country.”
“I just signed a bill that will ensure these workers receive the fair pay they deserve,” he further continued.
What are the highlights of the new wage law?
The US Bureau of Labor Statistics states that currently, California’s fast food workers make an average wage of $16.60 per hour or little more than $34,000 per year.
This wage falls below the California Poverty Measure for a family of four, a statistic derived by the Stanford Centre on Poverty and Equality and the Public Policy Institute of California that takes into account housing expenses and publicly-funded subsidies.
However, when this new law comes into effect on April 1, 2024, California's fast-food restaurant workers will have the highest guaranteed base salary in the sector, according to Associate Press.
Another crucial component of this law is the establishment of a nine-person fast food council, comprised of two representatives from the fast food industry, two from franchisee groups or restaurant owners, two from employees, two from organizations that support employees, and one from the general public.
The council would also have the power to increase the wage by 3.5% each year through 2029 or the annual change in the consumer price index, whichever is lower.
The council will consist of representatives from the fast food sector, the labor movement, and one chair who will be an unaffiliated member of the public, according to Forbes.
What did Gavin Newsom say regarding the minimum wage hike?
During the event. Newsom rejected the widely held belief that fast food employment is best suited for youths seeking their first working experience.
“That’s a romanticized version of a world that doesn’t exist,” Newsom said, adding “We have the opportunity to reward that contribution, reward that sacrifice, and stabilize an industry.”
Newsom’s law reflects the power and influence of labor unions in the nation’s most populous state, which have worked to organize fast-food workers in an attempt to improve their wages and working conditions.
"That was a tectonic plate that had to be moved," Newsom remarked in reference to the more than 100 hours of negotiations that were required to settle on the measures in the closing weeks of the state legislative session.
Internet fumes over Gavin Newsom’s decision to increase minimum wage
Gavin Newsom’s law to increase the minimum wage for fast food workers has immense social media attention, with users slamming him for killing "the franchise".
“This is crazy. You are driving people out of business. Resign,” one user fumed on X, formerly known as Twitter. “Fast food joints will automate processes and reduce staff to ¼,” another user commented under Newsom's tweet.
“Can't wait for the 2 for $25 Happy Meals with no fries and a bottle of LA River water. (30 sin taxTax not included not included),” one user wrote, while another said, “They deserve $20 an hour from having to step over thousands of homeless people to get to work.”
“Why just fast food workers vs. a universal minimum wage?” another user asked.
"Flipping burgers and dropping fries is not a $20/hr job. It's not even a $15/hr job. These are unskilled jobs for people who have little to no experience working. You've just priced franchisees and small business owners out of your state. Great job driving California into the dirt!" one more user said.
