By Jessica Poon, Staff Writer
On Labor Day 2022, California Governor Gavin Newsom signed a bill creating a council that could bump the minimum wage for Californian fast food chain workers up to 22$/hr and protects employees from discrimination.
The idea of the Fast Food Council was created after the bill was signed. They are the ones who will determine the minimum wage, max hours, and several other working conditions. The Fast Food council will be elected through petition, only being able to be signed by fast food chain employees.
The new bill, AB257, states that the council is allowed to decide the minimum wage between 15$/hr all the way up to 22$/hr starting Jan 1, 2023. A year after, on Jan 1, 2024, the minimum wage will be able to increase by 3.5% at most rounded to the nearest ten cents($0.10) to adapt to inflation. When the council no longer exists, which will be Jan 1, 2029, the wage will be increased by 3.5% rounded to the nearest ten cents ($0.10) until further notice.
According to the California Department of Industrial Relations, the current minimum wage in California is $15. The bill creates a possibility of increasing the wage by 7 dollars. Nicolaus Lau (17), a former Starbucks barista, says, “Yeah I only got paid like $15 an hour, it is not a lot at all. This bill would’ve helped me a lot if I still worked there.”
A 7-dollar possible increase of the minimum wage is exceedingly substantial. In addition, if you were to compare the current minimum wage to the national average minimum wage, which is $7.25, the difference would already be $7.75, which means the new capped minimum wage for 2023 is approximately triple the national minimum wage. With the wage increased, those working in the fast food industry would be able to take better care of themselves since the majority of fast food workers are adults.
Another feature listed in the bill is new protection protocols for employees against discrimination from employers. Employers are not allowed to in any way retaliate or discriminate against employees for refusing to work under certain circumstances. As long as they have reasonable cause to believe that it would violate regulations or pose a health risk to themselves, other employees, or the public, the employers cannot do anything about it. Employers are also not allowed to discriminate against employees for responding to media and higher-ups with things such as health risks within the location or a news story.
Although this new bill seems like a dream come true for fast-food workers, will smaller restaurants be able to handle the change? Inflation is already causing prices to rise, and since the wages seem to be likely to increase as well, it is likely that the prices of food will spike once 2023 begins. A study on the new bill from UCR states that food prices are estimated to increase by 7%-22% due to possible compensation increases.
On top of that, a statement posted by the International Franchise Association(IFA), displays several new complaints by franchisees, saying how the increase in compensation may force them to close their doors permanently. One of the complaints displayed is from Alex Johnson, an owner of several restaurants. He says, “During the highest inflation in 40 years, this bill harms everyone from local businesses and their employees to the millions of Californians who rely on quick-service restaurants each week..”
This new bill has become a controversy for people working within the fast food industry. Many younger part-time workers support this idea of a wage increase, whereas many franchisees and store owners want the bill to be vetoed. Hopefully, it all works out and both sides are able to compromise, and employees are able to keep the new protection protocols.
