Despite initial concerns, California's modest minimum wage increase for fast-food workers has not led to job cuts but rather has resulted in job growth, improved working conditions, and increased economic opportunities for these hardworking individuals.
About a year ago, California took a bold step by signing into law an increase in the minimum wage for fast-food workers. This legislation, which took effect on April 1, 2023, increased the minimum wage to $20 per hour for workers at fast-food chains with 60 or more locations and created new health and safety standards.
California's Minimum Wage Hike: A Success Story
As expected, this modest law was met with opposition from conservatives and their media allies, who predicted devastating job cuts and business closures. They even claimed that thousands of workers had been fired because of the wage increase.
However, the data now shows that the opposite is happening. California now has more fast-food jobs than ever before. Since the law was enacted, California has added 11,000 new jobs in the industry. As of July 2024, our state boasts a historic 750,500 fast-food jobs.
California's Minimum Wage Hike: A Success Story
But the benefits of a higher minimum wage extend well beyond these job numbers. A quarter of fast-food workers are the primary income earners for their families, and two-thirds are women. These workers are more likely than most to deal with workplace retaliation, extreme heat, unsafe working conditions, wage theft, and more.
Because of California's compassion for working people, these men and women living paycheck to paycheck now enjoy better working conditions, reduced financial stress, and greater opportunities for upward mobility. Families are finding it easier to make ends meet, reducing their reliance on public assistance programs and contributing to a healthier, more prosperous state.
California's Minimum Wage Hike: A Success Story
This is an industry that has seen profits soar while wages stagnate. Last year, the top 10 fast food chains saw surging growth, including McDonald's, which had a 63% increase in profits. Also, last year, the 10 biggest fast-food companies spent $6.1 billion on stock buybacks – largely benefiting Wall Street investors.
Contrast those profits with the stories of real people working to support themselves and their families.
California's Minimum Wage Hike: A Success Story
Julieta Garcia, a Los Angeles Pizza Hut worker, said, "Before the increase I had to choose between paying rent or bills on time every month." Dionicia Cerbacio, who works at a McDonald's in San Jose, said she’s "hoping to save up and take my grandkids to Disneyland for the first time." Karina Ceballos, who works at a Castro Valley Jack in the Box, saw $400 extra in her check and said, "I might be able to even save some money."
Our commitment to raising the minimum wage is a testament to California's values. We believe in fairness, equity, and the idea that everyone deserves a chance to succeed. And these results dispel the cynics who say we must choose between protecting workers and growing the economy.
The positive impacts we are seeing – job growth, improved working conditions, and enhanced economic stability – prove that this policy is not only economically sound but the right thing to do for California families.
