Starting Monday, most California fast-food workers will earn at least $20 an hour — the highest minimum wage across the U.S. restaurant industry. Yet the pay hike is sparking furious debate, with some restaurant owners warning of job losses and higher prices for customers, while labor advocates tout the benefits of higher wages.

The new law, signed by Governor Gavin Newsom last fall, takes effect on April 1, requiring that fast-food chains with at least 60 locations nationwide pay workers at least $20 an hour. The means the state’s 553,000 fast-food workers will earn more than the state’s $16 minimum wage for all other industries.

The new baseline wage comes as the fast-food industry is seeing booming earnings, with big chains like McDonald’s enjoying strong revenue growth and wider profit margins in recent years. That’s partly due to menu prices that have far outpaced inflation, with fast-food costs surging 47% over the past decade, compared with an average of 29% for all other prices, according to a new analysis from the Roosevelt Institute, a nonpartisan think tank.

  • bobs_monkey@lemm.ee
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    9 months ago

    Luckily McDs is starting to feel the pinch from people forgoing their crap food for being too expensive. It would seem they’re starting to realize that people do have a limit on what they’ll spend on their “food”

    • penquin@lemm.ee
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      9 months ago

      Our government is so god damn weak. Corporations run this country with a jungle grip. Some people rag on Europe a lot, but they sure have much better governments than us by a long shot.

      • Ultragigagigantic@lemmy.world
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        9 months ago

        For now. All capitalism trends towards end stage. Reforms are just delay the inevitable, not prevent it entirely.

        Think back to the 20th century labor movement. Could in your wildest dreams imagine such a movement occurring this day and age? But let’s just pretend everything goes perfect and we get a other similar labor movement right now. The best we can hope for is a temporary cease fire in the class war while the 1% works its way back into positions of power.

        All the blood sweat and tears shed making the new deal were wasted. Flushed down the drain because they negotiated with financial terrorists. like trying to make peace with russia…

        Capitalism always leads to the same dead end. Let’s try out something new. Maybe we haven’t even created the next way to live our lives yet? How could we find such a thing if we keep going around in a circle in this sarlac pit?