Minimum wage for fast food employees in California rose to $20 per hour on Monday, impacting more than half a million workers.
The legislation establishing the new minimum wage – AB 1228 – was passed last September and took effect on April 1, raising the minimum wage by 20% from $16 per hour to $20 per hour. The new wage impacts workers at limited-service restaurants that are part of a national fast food chain with at least 60 establishments nationwide, according to the State of California’s Department of Industrial Relations.
In addition to raising the minimum wage, AB 1228 allows the Fast Food Council, which is part of California’s Department of Industrial Relations, to raise this wage annually and allows it to develop proposals for other working conditions, including health and safety standards, the Office of Governor Gavin Newsom said.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
“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 September 2023 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.”
With the new minimum wage, if, for example, someone is working 20 hours per week, they would make $400 per week, pre-tax, or $20,800 for a full 52 weeks. Working a full, consistent 40 hours per week would mean making, pre-tax, under $45,000 a year.
But a federal minimum wage hike is unlikely
While some states have taken action to raise their minimum wage, the federal minimum wage has sat at $7.25 per hour since 2009.
Sen. Bernie Sanders introduced legislation in July 2023 that would raise the federal minimum wage to $17 by 2028 and benefit nearly 28 million workers.
“The $7.25 an hour federal minimum wage is a starvation wage. It must be raised to a living wage – at least $17 an hour,” Sanders said in a statement. “In the year 2023 a job should lift you out of poverty, not keep you in it. At a time of massive income and wealth inequality and record-breaking corporate profits, we can no longer tolerate millions of workers being unable to feed their families because they are working for totally inadequate wages. Congress can no longer ignore the needs of the working class of this country. The time to act is now.”
However, there has been limited momentum on a federal minimum wage, making it an unlikely case in the immediate future.
Related Content
-
Will Utah Stop Taxing Social Security Benefits?Retirement Taxes Utah Gov. Spencer Cox wants to end the state's tax on Social Security income.
-
IRS Shakeup? What Trump's Commissioner Pick Could Mean for TaxesIRS An unconventional nominee comes amid broader efforts to reshape the IRS and tax policy in 2025.
-
Year-End Retirement Tax Planning Actions if You Have $1 Million or MoreConsider implementing these four strategies before December 31 to potentially improve your tax situation for this year and the future.
-
25 Financial Moves to Consider Before December 31Tidying up your financial house before the New Year kicks off will put you in a great position to have a financially satisfying and successful 2025.
-
Five Side Hustles You Could Turn Into a Full-Time BusinessYou might be able to capitalize on your expertise in ways you haven't thought of, possibly even leading to quitting your 9-to-5 job to do what you love.
-
Rebound in Jobs Growth Keeps Fed on Track: What the Experts Are SayingJobs Report No nasty surprises in the November payrolls data leaves a quarter-point cut in play.
-
Who Works to Make Your Insurance Work?Ensuring a smooth insurance process takes more than just your insurance agent or broker — many talented people are busy behind the scenes.
-
Amazon Prime Flight Deals Offers $25 Plane Tickets for Young AdultsAmazon partners with StudentUniverse to offer $25 flights to young adults with certain Amazon Prime accounts.
-
Three Charitable Giving Strategies for High-Net-Worth IndividualsIf you have $1 million or more saved for retirement, these charitable giving strategies can help you give efficiently and save on taxes.
-
The Wealth-Building Powers of Health Savings Accounts (HSAs)Health savings accounts could be the most underutilized wealth-building tool out there. Here’s who should use them and how to maximize their benefits.
