California's new minimum wage law to boost pay for workers in this sector
If approved, the new minimum wage would reach US$20.70 per hour, benefiting more than half a million employees in the sector and consolidating California's position as the state with the highest wages in this area.
The minimum wage in California could increase in the coming months. Thanks to California Law AB 1228, effective April 2024, the state's Fast Food Council has the authority to annually adjust the base wage for a significant group of workers, provided the increase does not exceed 3.5% per year.
This adjustment would benefit thousands of employees who currently earn $20 per hour, a figure established by the same legislation last year. If the increase is approved, the new minimum wage in California for these workers could reach $20.70 per hour, which would consolidate the state as the highest-paying state in this sector nationwide.
California minimum wage: Which workers are eligible for a raise?
The potential minimum wage increase in California would apply only to fast-food workers at chains with 60 or more locations nationwide. This measure would not impact small restaurants or other employment sectors.
According to information from unions and labor organizations, there are nearly half a million employees in the fast-food sector in California, 60% of whom are from Latin America. The implementation of California's $20 hourly minimum wage starting in April 2024 has had a noticeable impact on their income, and a new adjustment would ensure their wages remain in line with inflation.
The California Fast Food Council, the body responsible for evaluating these adjustments, approved a motion to analyze the possible increase in late February 2025. If the measure advances, the increase would take effect in April or May of this year.
However, some employers have expressed concern, noting that a further increase in the minimum wage in California could translate into higher operating costs for businesses, potentially impacting the hiring of new employees.
Are there other states in the US with laws for workers in this field?
California isn't the only state that has implemented regulations to improve wages for fast-food workers, but it has set the highest figure so far.
Currently, California's state minimum wage of $16.50 per hour is one of the highest in the country, surpassing the federal minimum wage of $7.25 per hour, which hasn't changed since 2009. Other states with competitive wages include:
- Washington: $16.28 per hour
- Massachusetts: $15 per hour
- Oregon: $15.45 per hour (in certain cities)
In contrast, in states like Georgia and Wyoming, the minimum wage is $5.15 per hour, although the federal minimum wage of $7.25 applies in most cases.