Mill Valley, CA: Workers at In-N-Out location behind counter take orders. (Photo: David Tran Photo, Shutterstock)
Gov. Newsom Signs New Law Raising Fast Food Minimum Wage To $20
‘We’re seeing more and more of these automated kiosks pop up, and this is why’
By Evan Symon, September 28, 2023 4:05 pm
A bill to raise the fast food minimum wage to $20 an hour in California was signed into law by Governor Gavin Newsom Thursday, with the new wage change to take effect in January 2024.
Assembly Bill 1228, authored by Assemblyman Chris Holden (D-Pasadena), became one of the most contentious bills this session during the summer, with only a compromise between the Service Employees International Union (SEIU) and fast food companies managing to keep the bill alive earlier this month.
Originally, the bill had planned to raise the minimum up to $22 an hour and hold franchise corporations accountable for labor law violations at individual locations. In addition, thanks to a new Fast Food Council created from a new law signed last year (AB 257), benefits like paid leave and predictive scheduling would be introduced. Faced with drastically increased costs, fast food companies took action. The number of electronic kiosks instead of cashiers swiftly climbed across the state, with a ballot referendum that would overturn AB 257, as well as put the law on hold until at least November 2024, getting enough signatures earlier this year.
With both sides ready to take even more drastic action, and the end of the legislative session looming, lawmakers brought together unions and fast food companies to work a compromise. Earlier this month, it was agreed the AB 1228 would be altered to have minimum wages for fast food workers going up to $20 an hour rather than $22 starting in April 2024, with local governments prohibited from raising them even further. The raise would only apply to chains with 60 or more nationwide locations and would not apply to chains that also operate an on-site bakery, such as Panera Bread.
The Fast Food Council, meanwhile, would be able to raise the minimum wage each year through 2029, but would no longer have the power to set workplace standards, only recommendations. They would also be prohibited from implementing paid leave, vacation, predictive scheduling, and other standards wanted by the SEIU and other unions. Also under the agreement, Franchise corporations would no longer be held for labor law violations at individual locations.
With a compromise reached, AB 1228 passed both the Assembly and Senate on September 14th, albeit with divisive votes of 53-17 and 32-8 respectively. This led the way for Governor Newsom to sign the bill into law on Thursday.
“California is home to more than 500,000 fast-food workers who – for decades – have been fighting for higher wages and better working conditions,” said Newsom at the signing on Thursday. “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.”
AB 1228 signed into law
Assemblyman Holden added, “Today, we witnessed the signing of one of the most impactful fast food wage laws that this country has ever seen. We did not just raise the minimum wage to $20 an hour for fast food workers. We helped a father or mother feed their children, we helped a student put gas in their car, and helped a grandparent get their grandchild a birthday gift. Last month, when we were knee deep in negotiations, hundreds of workers slept in their cars and missed pay days to come give their testimony in committee and defend their livelihood. Sacrifice, dedication, and the power of a government who serves its people is what got us to this moment. My goal for AB 1228 was to bring relief and solutions where they were needed and together with my colleagues and Governor Newsom, that is what we have done. Thank you to the SEIU and all who supported this important effort. We, as a state, should be proud.”
Despite some praise for the bill, others responded to the bill in a more negative light on Thursday. Many pointed out that the higher wages would only further push companies to hire less people overall and could lead to the pull out of several locations because of the higher costs.
“The worst parts were thankfully taken out of the bill,” explained fast food restaurant consultant Linda Medina. “The liability part was a no-go and what they wanted to put on these locations was harsh. They forget that these aren’t these big corporations running them directly. They are franchises, and the risks can be similar to running a stand alone restaurant. Pushing higher wages on them is pretty bad.”
“We’re seeing more and more of these automated kiosks pop up, and this is why. They save money for these locations. And they are looking into more automated ways for food preparation and everything else. It is a huge put upon for companies. So yeah, more money and an industry wage lasting the decade. The fast food industry will be looking a lot different by then.”
AB 1228 goes into effect January 1, 2024.
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Just remember, a govt-mandated high minimum wage for a fast food worker, or any worker, eventually means no job AT ALL. Employees are let go or the business closes, because the business can’t afford to stay open. It’s called REALITY. Is that what the Dem/Marxists, who take orders from the unions, because their campaign donations come from the unions, want? Apparently so. The timing of this is awful, by the way, after Covid Fake Hysteria, and the restaurants that remain are trying to recover. Idiot Dem politicians
And don’t forget Showandtell the price increases in the menu because of this. Remember when you could go to McDonalds and get a burger, fries, and a shake for under $1 ? Leave it to the Democrat Party to create more problems.
YES JOHN! When the Dem in-laws start complaining that In-N-Out costs more, explain to them about the minimum wage, why jobs are lost, businesses shuttered, and prices go (way) up. Which then negatively affects a thousand other things. Sigh!
WHAT??? Only $20??? Why not $50 and hour??? Why not $100??? {sarc in case you’re a Democrat}
This is why no one should be allowed to run for office if they’ve ever been a “community organizer” or never actually worked a real job prior to running for office…
Take Holden’s background (copied from Wikipedia) :
“Chris Holden (born July 19, 1960) is an American politician serving in the California State Assembly. He is a Democrat representing the 41st Assembly District, which encompasses the northern San Gabriel Valley, and is centered in Pasadena.[1]
He is a member of the California Legislative Black Caucus.[2] Prior to his election to the Assembly in 2012, Holden was a mayor and City Councilmember in Pasadena. He is the son of longtime Los Angeles politician Nate Holden. Holden currently serves as Chairman of the Appropriations Committee, the most powerful position after Speaker….
In his first term, Holden introduced legislation to require California schools to teach about the significance of the Barack Obama presidency.[8] He introduced legislation to tackle the problem of grease thievery at restaurants.[9] He also introduced legislation to study and foster economic development and job creation.[10]
Holden also has been a leader in the legislation to address California’s wildfire crisis. ”
Legislation to “tackle the problem of GREASE THIEVERY in restaurants???
Are you effing kidding us???
Yes, Holden is among the worst of the worst, isn’t he. Glad to see his background stuff posted. What a guy.
Guess what will be next:
“All employees of store that sell firearms or ammunition must be paid $500 an hour.”
As the article pions out, this will lead to millions more out of work as they are replaced by automation. And I find it beyond insulting that the Dems say “this will help workers put gas in their car” when they know full well that the high price of gas is due to their own policies (along with the high price of everything else). These patronizing “Progressive” elites don’t give a damn about these food workers beyond how they can be used as political pawns to keep themselves in power.
$20/hr = Kiosks to order food
drive through will be a kiosk to punch in order
Robots to make lousy hamburgers, fries, and serve up drinks will be normalized.
Human interaction will be reduced or eliminated.
When Gov’t dictates what a specific business can do — that is Communism creeping
Govt dictates school to lie to parents to fit their agenda — more communism
“Efficiency is achieved by eliminating humans”.
You’ll notice that this bill is more pandering by the Democrats to a union. Unions run the Democrats, and the Democrats run this state.
This is nothing but a money loser for the fast food franchises. Raise the price, and sales go down along with profits. Don’t raise the price, and profits goes down.
There is no logical reason for a state government to get involved in worker wages. It should be based on work supply and demand. The supply is obviously large in California, because the public school indoctrination camps pump out students ill prepared for skilled labor.
This is a political stunt to get votes and pander to the unions for more money. The poor workers who think that they are getting a raise will eventually find out that they are no better of than they are now. Them getting this raise will cause employees of other businesses to ask for and receive a comparable raise. This will cause all employers to raise prices to offset the increase in labor costs. This will also cause the landlords to raise rents so that their spending power remains the same. When it is all said and done the workers will be back to square one with in a year. The only problem is that when these fast food workers get the raise they will go out and buy something like a car with their new found wealth, only to fine out that because of the inflation they caused they can’t afford the new purchase. It is a horrible game politicians play on the uneducated.
Dennis you are so right that this new law (AB 1228) has implications FAR BEYOND a raise in minimum wage for certain fast food workers. We all need to remember this. The devastating domino effects are explained in the video below (30 mins)
“Why California’s Fast Food is Getting More Expensive” – Hank Adler
https://www.youtube.com/watch?v=ilDFAnNuRQE
Note that Hank Adler is talking specifically about AB 257, passed and signed last year, which has since been qualified by fast food entrepreneur and other interests for the 2024 state ballot and voters will see it there. It is now on hold until then. AB 257 would have also established a 10-person council to set industrywide health and safety standards and blah, blah, blah. But Adler’s remarks also address and explain very well the devastating effect of the $20 minimum wage seen in recently passed and signed AB 1228.
Employed people are much harder to manipulate and control than people dependent on government dole. As a bonus for the elites this also raises the price of food and drives restaurants out of business. Their game is to create shortages of every essential item and/or to price them out of reach for all but the super rich in order to destroy and control.