California’s fast-food workers are about to see a significant pay raise as the state increases its minimum wage to $20 an hour starting Monday. This change, part of a new law aimed at providing more financial security to workers in a historically low-paying profession, may have far-reaching implications.
The Golden State is known for its high cost of living, and the increase in minimum wage for fast-food workers may lead to higher prices for consumers. Scott Rodrick, a McDonald’s franchise owner in California, expressed concerns about the impact this change will have on business owners.
Restaurant owners, like Rodrick, may need to raise prices to offset the impact on their profit and loss statement. Many franchise owners have raised concerns over the law, especially during California’s slowing economy.
Democrats in the state Legislature passed the law last year in an effort to ensure fair wages for all workers, not just teenagers earning spending money. The law is seen as an acknowledgment that many fast-food workers in California are adults trying to support their families.
Rodrick believes that defining a living wage should be left to the states and municipalities to determine what is appropriate for their economy. As the $20 minimum wage goes into effect, the state will be closely watching how businesses and consumers respond to the change.
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