California fast-food workers are getting a pay boost to $20 an hour on April 1, but the benefits are likely going to be paired with reduced hours.
a law hiking the minimum wage for fast-food workers to $20 an hour, some companies have warned their employees that they will be scheduled for fewer hours as a result of the wage increase. The, which increases wages for fast-food companies with more than 60 locations nationwide, has put some managers of these chains in a tricky position.
Many employees will receive a 25% wage increase as a result of the new law. California is one of the most expensive states in the country to live in. And more than half of its employees work in the fast-food industry. Some restaurants have already warned that price hikes are likely to affect customers as well. Jack in the Box, Starbucks, McDonald’s, and Chipotle said prices could go up 2.5% to 3.5%. Pizza Hut said the wage increase was the cause of the company warning nearly 1,000 employees they could lose their jobs.
Vigdor’s research on the increase from $9.47 to $13 an hour in Washington didn’t have much of an impact on the number of jobs available but did find that workers lost hours.
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California fast food workers now make $20 minimum wageJustin Boggs is a writer for the E.W. Scripps company. Justin covers anything from politics to sports and entertainment.
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