How Will California’s Fast Food Minimum Wage Increase Affect Workers?
Summary from the AllSides News Team
California raised the mandatory minimum wage for fast food workers to $20 on Tuesday, sparking dialogue across the media spectrum.
‘Crazy’ Policy: David Neumark, writing for The Wall Street Journal (Lean Right bias), questioned why food prep employees at fast food restaurants should make more than those at the “corner diner” and argued that “policies should treat people in similar economic circumstances the same.” Neumark discussed several often-referenced studies on the matter and claimed they are flawed, ultimately concluding that a 10% minimum wage raise leads to a 2% fall in employment.
Too Much Power: Michael Reich and Justin Wiltshire, writing for CalMatters (Center bias), blamed the bearish outlook on the law change from critics and the media on an “unsophisticated understanding” of economics. The authors pointed to economists “repeatedly” finding that minimum wage raises don’t lead to “even minor job losses.” The two argued that fast food chains currently have too much power, resulting in artificially low wages, higher job turnover, and therefore vacant positions.
A Raise For Who?: An analysis from The Sacramento Bee (Left bias) looked into the nuances of the law and which workers will qualify for the wage raise. Notable exceptions include fast food restaurants that operate “a bakery that produces for sale on the establishment’s premises bread” and those that operate within a “grocery establishment.” Contrary to previous speculation, Panera Bread, whose owner is a significant donor to California Gov. Gavin Newsom, will not be exempt from raising wages.
Featured Coverage of this Story
From the Center
No, California’s wage bump for fast food workers isn’t doomsday for restaurants. Here’s whyToday, the minimum wage for California fast food workers will increase to $20 an hour, or 25% above the state’s $16 level. And a first-of-its-kind fast food council will give workers, employers and state government the opportunity to come together and set standards for the industry.
But rather than celebrating, many headlines are predicting mass layoffs, major burger price increases and even the end of fast food as we know it in California.
These headlines reflect an unsophisticated understanding of an outmoded and simplistic theory: In Econ 101, if you increase the price of labor,...
From the Left
California fast food minimum wage just jumped to $20 an hour. Who actually gets it?Whether someone prepares burgers, blends smoothies or tosses pizza dough, what determines which California fast food workers will be paid $20 an hour?
Assembly Bill 1228 is in effect as of Monday, setting wages for California fast food workers $4 above than statewide minimum. It also creates a Fast Food Council to determine future minimum wage increases and to establish other employment standards at fast food restaurants, according to the Department of Industrial Relations.
We answer these questions about the new California fast food wage law:
Which fast food workers will benefit from the pay increase?
What happened...
From the Right
California’s Crazy ‘Fast Food’ Minimum Wage Takes EffectCalifornia Gov. Gavin Newsom’s higher minimum wage for fast-food workers takes effect Monday. On top of California’s already high $16 minimum wage, the minimum wage for fast-food workers will increase to $20 an hour, the highest minimum wage in the U.S.
Minimum-wage advocates parrot the claim that this is a win for fast-food workers. They cite a few studies to argue that those workers will earn more and suffer no job loss, and that poverty will fall. But a growing body of research demonstrates that the small number of studies advocates...
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