The law was supported by thetrade association representing fast food franchise owners. But since itpassed, many franchise owners have bemoaned the impact the law is havingon them, especially during California’s slowing economy.
By Terry Chea and Adam Beam, Associated PressAn employee collects payment at an Auntie Anne's and Cinnabon store in Livermore, Calif., Thursday, March 28, 2024. He's among hundreds of thousands of California fast-food workers who will be paid at least $20 an hour starting Monday, April 1.
That includes immigrants like Ingrid Vilorio, who said she started working at a McDonald’s shortly after arriving in the United States in 2019. Fast food was her full-time job until last year. Now, she works about eight hours per week at a Jack in the Box while working other jobs. The law was supported by the trade association representing fast food franchise owners. But since it passed, many franchise owners have bemoaned the impact the law is having on them, especially during California’s slowing economy.
Increasing his employees’ wages will cost Johnson about $470,000 each year. He will have to raise prices anywhere from 5% to 15% at his stores, and is no longer hiring or seeking to open new locations in California, he said.“I try to do right by my employees. I pay them as much as I can. But this law is really hitting our operations hard,” Johnson said.
Instead, data showed wages went up and employment did not fall, said Michael Reich, a labor economics professor at the University of California-Berkeley.
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