x
Breaking News
More () »

California's new minimum wage for fast food workers goes into effect

Fast food chains McDonalds and Chipotle say they plan to raise menu prices to make up for the higher wages. Some businesses say they will need to cut staff.

SAN DIEGO — Most fast food workers will make $20 an hour in California under a new law that goes into effect April 1. 

It's a win for thousands of fast-food workers who say they just want livable wages.

"It's very expensive to live in San Diego and hard just to make it out here so I think it's wonderful people need higher wages here," Harriet said. 

Not everyone thinks the pay increase is a good idea.

On the flip side, the higher wages could have a trickle-down effect on customers. Fast food chains including McDonalds and Chipotle say they plan to raise menu prices to make up for the higher wages. Some businesses say they will need to cut staff.

State labor filings say some Pizza Hut locations are already laying off workers. Hundreds of delivery drivers are many of those impacted.

"I've seen estimates where this might add about five percent to the cost of fast food," said economist Alan Gin.

Gin says the higher pay could attract people to work in the fast food industry. The new law only applies to chains with 60 or more locations however small businesses say they may have to also raise pay to stay competitive.

"I'm a business owner. I own a juice company. Hiring employees at $20 an hour is pretty steep for me just starting," RJ said.

The law will be affecting about half a million fast food workers across the state, many of which lawmakers say are adults working to support their families.  But not everyone sees it that way.

"You start out making $20 an hour at a fast food restaurant with no qualifications. You're kind of taking away from those who have gone to school to get qualifications," Mark said.

The minimum wage in California is $16 per hour. It's more than double the federal minimum wage of $7.25 per hour.

Related

No, Tyson Foods is not hiring ‘illegal immigrants’ while laying off U.S. workers

WATCH RELATED: Fast food chains are cutting jobs as California minimum wage increase takes effect

Before You Leave, Check This Out