Minimum Wage Is Now $20 an Hour for California Fast Food Workers
The new minimum wage took effect on April 1.
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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
The Met Opera May Sell Its Iconic Paintings. Is it a Good Investment?Buying the Marc Chagall murals would come with a big stipulation attached.
-
Do You Really Need All Those Phone Plan Perks?Unlimited data plans now come bundled with streaming, travel perks and device deals — but many people pay for extras they rarely use.
-
The New Average Divorce Rate By Age: Are You in the Risk Zone?While the overall divorce rate has seen a small but steady decline, gray divorces have been on the rise since the 1990s.
-
We Retired at 70 With $4.3 Million. My Wife Won't Spend 'Our Grandkids' Inheritance,' but I Want to Travel.I want to travel while we are still healthy, but my wife wants to pass down our wealth. Who is right?
-
The 1-Month Rule for Setting Your Car Insurance DeductibleThe ideal car insurance deductible balances risk and savings. Here's how to find it.
-
'You Owe Me a Refund': Readers Report Challenging Their Attorneys' BillsThe article about lawyers billing clients for hours of work that AI did in seconds generated quite a response. One law firm even called a staff meeting.
-
How Drones Can Affect Your Insurance CoverageHow insurers are using aerial imagery to assess homes, the backlash from policyholders and how state regulators are trying to rein in the practice.
-
My First $1 Million: Risk Management Consultant, 55, Marlborough, Mass.Ever wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
Divide and Conquer: Your Annual Financial Plan Made Easy, Courtesy of a Financial AdviserOverwhelmed by your financial to-do list? Split it into four quarters and assign each one goals that connect to the time of year. It could be life-changing.
-
$100,000 Travel Emergencies You Don't See Coming and How to PrepareTravel emergencies can get expensive fast. Here's how to protect your wallet from the worst-case scenario.
-
The Financial Details Every Couple Should Share (Before There’s an Emergency)From passwords to policy numbers, having shared access to key accounts can prevent financial chaos when life throws a curveball.