California Sets Fast-Food Worker Minimum Wage at $20 per Hour Starting 2025
Starting April 2025, California will implement a $20 hourly minimum wage for fast-food workers, the highest in the U.S., benefiting approximately 500,000 employees and enhancing workplace standards.
HIGHLIGHTS
- Effective April 2024, California raises the minimum wage for fast-food workers to $20 per hour.
- This new wage surpasses all other states, marking the highest minimum pay nationwide.
- Approximately half a million fast-food employees will gain from this wage increase and improved labor conditions.
California is set to increase the minimum wage for fast-food workers to $20 per hour beginning in April 2024. This substantial rise from the current $15.50 minimum wage positions California at the forefront of fair pay across the nation.
About 500,000 fast-food employees are anticipated to benefit from this change, which also includes stronger protections regarding workplace health and safety. The legislation applies to fast-food establishments operating at least 60 outlets nationwide, excluding bakeries like Panera Bread that produce and sell their own bread.
Under the new law, the Fast Food Council was established within California’s Department of Industrial Relations. This council will oversee the development of standards related to working conditions and future wage adjustments.
Following the 2024 increase, annual wage raises will be capped at 3.5% or aligned with the Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers, whichever is lower.
This wage enhancement aligns with a broader wave of labor activism across the U.S., where unions are pushing for improved pay and benefits. Notably, California recently passed legislation to incrementally raise healthcare workers' minimum wage to $25 per hour over the next decade.
Have a news tip for our reporters? Please contact us at tips@investopedia.com.
Discover the latest news and current events in Government News as of 04-10-2023. The article titled " California Sets Fast-Food Worker Minimum Wage at $20 per Hour Starting 2025 " provides you with the most relevant and reliable information in the Government News field. Each news piece is thoroughly analyzed to deliver valuable insights to our readers.
The information in " California Sets Fast-Food Worker Minimum Wage at $20 per Hour Starting 2025 " helps you make better-informed decisions within the Government News category. Our news articles are continuously updated and adhere to journalistic standards.