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Gavin Newsom Signs Law Requiring Fast Food Restaurants to Pay $20 per Hour

Tall Timbers

Imperfect but forgiven
Staff member
Califoria Gov. Gavin Newsom (D) was exultant Thursday after signing a law to raise wages in fast food restaurants to $20 per hour and to create a new “council” that will govern the industry.

“California is home to more than 500,000 fast-food workers who – for decades – have been fighting for higher wages and better working conditions,” Newsom said in a statement. “Today, we take one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast-food workers a stronger voice and seat at the table.”

“In general, $20 an hour is not considered a living wage in California,” CalMatters.org noted. “For a working couple with one child, that would be $23.81 an hour and for a single adult with no children, it would be $21.24, according to the Massachusetts Institute of Technology’s living wage calculator.”


The higher the wages companies are compelled to pay out for these entry level jobs historically filled by first time employees who are often still in high school and living with their parents, the more the chains will find ways to do with less employees and the more single store ventures will go out of business. This trend to compel higher and higher pay for entry level jobs affects us all because it is very inflationary. And because it is inflationary it doesn't really help the employees it is meant to, as they will have to pay yet more for everything they purchase... if they can even keep their job.

For people on a fixed income... they have no way to combat higher prices other than to try and get a job... Social Security increases never keep up with inflation.
 
Well, that'll help kill the fast food industry there. The increased wage cost will be reflected in higher restaurant menu prices and many more cash-strapped Californians will not be able to afford to eat out.
 
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