Fast food workers in California received a pay raise Monday, as a new law took effect that sets a $20 hourly minimum wage for workers at large chains.
The new law applies to some 500,000 California employees at fast food chains with more than 60 restaurants.It also creates a new fast food council, made up of industry and union representatives, to address future wages and working conditions.UC Berkeley labor expert Ken Jacobs says research shows historically, employment has not decreased during past minimum wage hikes. Jacobs says the fast food industry has been shown in research to have a downward pressure on industry wages.
So for a business owner, I mean, that's the worst time to have to raise prices, but I see it as a necessity," Johnson said. "I want to do right by my employees, and want to pay them as much as I can, but this bill, AB 1228, has really hit our operations hard. We're no longer hiring. We're not back-filling positions,"Another franchise group owner, Harsh Ghai, agrees. He is California's largest operator of Burger King restaurants.
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