California raises min wage for major chain fast food workers to $20 per hour starting early 2024

[JEDI]

New California law raises minimum wage for fast food workers to $20 per hour, among nation's highest

California Gov. Gavin Newsom has signed a law raising the minimum wage for fast food workers to $20 per hour. The raise takes effect April 1, 2024.

apnews.com

The state’s minimum wage for all other workers — $15.50 per hour — is already among the highest in the United States.


Interesting.. Giving unskilled workers the highest minimum pay in the nation.
Let's see the unintended consequences 5yrs from now.

Edit:
Which fast food chain will be the 1st to pull out of CA?
Or create a sudsidy that has 59 stores or less?

 

[Jaskalas]

The state’s minimum wage for all other workers — $15.50 per hour — is already among the highest in the United States.


Interesting.. Giving unskilled workers the highest minimum pay in the nation.
Let's see the unintended consequences 5yrs from now

Given what inflation did in recent years, California is merely maintaining their meager pay.
As it is, minimum wage would need to be at least $30 for anyone to enjoy the wealth Baby Boomers were paid.

 

[NWRMidnight]

New California law raises minimum wage for fast food workers to $20 per hour, among nation's highest

California Gov. Gavin Newsom has signed a law raising the minimum wage for fast food workers to $20 per hour. The raise takes effect April 1, 2024.

apnews.com

The state’s minimum wage for all other workers — $15.50 per hour — is already among the highest in the United States.


Interesting.. Giving unskilled workers the highest minimum pay in the nation.
Let's see the unintended consequences 5yrs from now.

Edit:
Which fast food chain will be the 1st to pull out of CA?
Or create a sudsidy that has 59 stores or less?

Right off the bat you claim "unskilled workers". You do know that there are other factors right? Most fast food is high paced, grueling hours, stressful, and hard on your body because most of them work their employees to the bone.

What it comes down to, people who throw around the "unskilled" talking point are hiding behind that "excuse" rather than admitting you believe lowly peasants don't deserve higher pay, regardless of what it is.

 

[Sunburn74]

I think economists are torn about whether minimum wage increases are good or whether they actually help the people you want to help.

 

[skyking]

Everybody who has replied, when did you last make $20 per hour?
For me it was 1991.

 

[ivwshane]

Good for them! I guess the OP is a profit before people king of guy, an anti worker type, aka a boot licker for big business.

 

[brycejones]

New California law raises minimum wage for fast food workers to $20 per hour, among nation's highest

California Gov. Gavin Newsom has signed a law raising the minimum wage for fast food workers to $20 per hour. The raise takes effect April 1, 2024.

apnews.com

The state’s minimum wage for all other workers — $15.50 per hour — is already among the highest in the United States.


Interesting.. Giving unskilled workers the highest minimum pay in the nation.
Let's see the unintended consequences 5yrs from now.

Edit:
Which fast food chain will be the 1st to pull out of CA?
Or create a sudsidy that has 59 stores or less?

Any other groups of people you think should be paid poverty wages?

 

[fskimospy]

While I’m down with a higher minimum wage and really we should just set one, index it to inflation, and forget about it, if California really wants to help low wage people they need to build more houses. That’s all they need to do.

 

[Zor Prime]

One of my homes is in CA where I spend a lot of time. I basically never eat fast food in CA anymore because it currently borders on authentic cuisine restaurant prices.

I can get a meal at a fast food joint or go to an authentic Italian or Mexican restaurant, etc. and pay a couple bucks more. If I got time, what am I gonna do? It's stupid to do fast food in CA if you got some time on your hands. The last place around here I can think of that has a decent deal is Rally's and that requires a coupon from a local grocery store.

That's cool, pay them $100/hr. Whatever. This will just ensure I never do fast food in CA unless I have zero options and my arm suddenly looks appetizing. Go for broke, pay them $1000/hr.

What is already happening is cutting people short on hours so they aren't eligible for benefits unless you're a manager. And that happens outside of CA, even. This will almost virtually ensure that the average fast food worker will not hit 32 hours in a week. In fact, even outside CA, I know some fast food joints, like a McDonalds in particular, that works with their employees to make sure they're not getting overpaid so that they can retain their government assistance.

What other results are going to be yielded from $20/hr at fast food chains? Are some of the companies going to bounce? I don't know. But I know this is wonderful for the regular restaurants, and some people are eating healthier due to it. Pay the workers a million bucks per month so I can be entertained by the fallout, let's do it.

 

[IronWing]

^ What a strange post.

 

[mikeymikec]

To anyone who still labours under the delusion that say fast-food work is "unskilled labour":

If a role requires any training whatsoever, then those being paid to do it are sufficiently skilled to do the work properly. I've worked in a fast-food restaurant, and trust me, every role requires training; because if the work is allowed to be done improperly then the establishment will get shut down for one reason or another (e.g. hygiene standards, infestation, people not wanting to eat there).

 

[Greenman]

Why just people in the fast food industry? Why not everyone? Are Home Depot clerks not as deserving as the Mickey D's bus person?

 

[Fanatical Meat]

New California law raises minimum wage for fast food workers to $20 per hour, among nation's highest

California Gov. Gavin Newsom has signed a law raising the minimum wage for fast food workers to $20 per hour. The raise takes effect April 1, 2024.

apnews.com

The state’s minimum wage for all other workers — $15.50 per hour — is already among the highest in the United States.


Interesting.. Giving unskilled workers the highest minimum pay in the nation.
Let's see the unintended consequences 5yrs from now.

Edit:
Which fast food chain will be the 1st to pull out of CA?
Or create a sudsidy that has 59 stores or less?

Haha they won’t, food will just cost like $0.20 more per item

 

[Fanatical Meat]

Why just people in the fast food industry? Why not everyone? Are Home Depot clerks not as deserving as the Mickey D's bus person?

This is a worthwhile question. Purely speculation maybe it has something to do with fast food places overwhelmingly using part time workers?

 

[Pens1566]

Seems the doom and gloom predictions about places that have raised minimum wage have all fallen flat, no?

 

[brycejones]

Seems the doom and gloom predictions about places that have raised minimum wage have all fallen flat, no?

Dude, all the fast food workers are buying BMWs and a burger costs like $97. It's the end of western civilization!

 

[IronWing]

<Rich people get richer off the labor of others and liberals suggest taxes>
Conservatives: That's born of envy and spite!

<Poor people get a meager raise>
Conservatives: How dare they!

 

[Jaskalas]

Why just people in the fast food industry? Why not everyone? Are Home Depot clerks not as deserving as the Mickey D's bus person?

You are correct, it should be a generic minimum wage.
My typical problem with Democrats, in economics, is they fail to go far enough.

 

[ivwshane]

Cool story. In summary, this doesn’t affect you at all.

One of my homes is in CA where I spend a lot of time. I basically never eat fast food in CA anymore because it currently borders on authentic cuisine restaurant prices.

I can get a meal at a fast food joint or go to an authentic Italian or Mexican restaurant, etc. and pay a couple bucks more. If I got time, what am I gonna do? It's stupid to do fast food in CA if you got some time on your hands. The last place around here I can think of that has a decent deal is Rally's and that requires a coupon from a local grocery store.

That's cool, pay them $100/hr. Whatever. This will just ensure I never do fast food in CA unless I have zero options and my arm suddenly looks appetizing. Go for broke, pay them $1000/hr.

What is already happening is cutting people short on hours so they aren't eligible for benefits unless you're a manager. And that happens outside of CA, even. This will almost virtually ensure that the average fast food worker will not hit 32 hours in a week. In fact, even outside CA, I know some fast food joints, like a McDonalds in particular, that works with their employees to make sure they're not getting overpaid so that they can retain their government assistance.

What other results are going to be yielded from $20/hr at fast food chains? Are some of the companies going to bounce? I don't know. But I know this is wonderful for the regular restaurants, and some people are eating healthier due to it. Pay the workers a million bucks per month so I can be entertained by the fallout, let's do it.

 

[Brainonska511]

One of my homes is in CA where I spend a lot of time. I basically never eat fast food in CA anymore because it currently borders on authentic cuisine restaurant prices.

I can get a meal at a fast food joint or go to an authentic Italian or Mexican restaurant, etc. and pay a couple bucks more. If I got time, what am I gonna do? It's stupid to do fast food in CA if you got some time on your hands. The last place around here I can think of that has a decent deal is Rally's and that requires a coupon from a local grocery store.

That's cool, pay them $100/hr. Whatever. This will just ensure I never do fast food in CA unless I have zero options and my arm suddenly looks appetizing. Go for broke, pay them $1000/hr.

What is already happening is cutting people short on hours so they aren't eligible for benefits unless you're a manager. And that happens outside of CA, even. This will almost virtually ensure that the average fast food worker will not hit 32 hours in a week. In fact, even outside CA, I know some fast food joints, like a McDonalds in particular, that works with their employees to make sure they're not getting overpaid so that they can retain their government assistance.

What other results are going to be yielded from $20/hr at fast food chains? Are some of the companies going to bounce? I don't know. But I know this is wonderful for the regular restaurants, and some people are eating healthier due to it. Pay the workers a million bucks per month so I can be entertained by the fallout, let's do it.

**One of your homes, as in >1 home that you own?!? That's rich that you complain about costs of eating out.

 

[Greenman]

Anyone know what the average labor cost is on a Big Mac?
Some quick and dirty math shows a roughly 33% labor cost increase, plus the employers piece of taxes. That's a fair chunk added to production cost. Though it seems like high volume sellers could cover that with a pretty small price increase.

 

[fskimospy]

Anyone know what the average labor cost is on a Big Mac?
Some quick and dirty math shows a roughly 33% labor cost increase, plus the employers piece of taxes. That's a fair chunk added to production cost. Though it seems like high volume sellers could cover that with a pretty small price increase.

A quick google says 20% of McDonalds' costs are labor. If we have a 33% increase in labor costs here that should equal a price increase of about 7%.

Average Big Mac costs ~$5, so we're talking about $0.35 more.

 

[uclaLabrat]

A quick google says 20% of McDonalds' costs are labor. If we have a 33% increase in labor costs here that should equal a price increase of about 7%.

Average Big Mac costs ~$5, so we're talking about $0.35 more.

Which is hilarious because in n out sells a double double for roughly $4; (much) higher quality, 20% less cost, and they already pay their workers more. In n out prints money ffs.

As has been posted, mcdonalds sells big macs in denmark for less than thry do here and they pay their workers more. McDonald's is clearly still profitable there, otherwise theyd close.

We have a distorted market, or maybe more precisely mcdonalds has managed to convince folks that a $5 big mac is a good value. Theyre certainly not hurting on margins.

 

[Fenixgoon]

**One of your homes, as in >1 home that you own?!? That's rich that you complain about costs of eating out.

Queue the "I have >1 home because I don't eat out" response.

If only we all avoided coffee, avocado toast, or otherwise enjoying life.

 

[NWRMidnight]

Anyone know what the average labor cost is on a Big Mac?
Some quick and dirty math shows a roughly 33% labor cost increase, plus the employers piece of taxes. That's a fair chunk added to production cost. Though it seems like high volume sellers could cover that with a pretty small price increase.

Fast food (not full service), labor costs are south of 20%, as low as 15% depending on what state you are asking about.