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Could fast food prices rise in California?
A new $20/hour minimum wage for California fast food workers goes into effect in April 2024. The move has some fast food companies like Chipotle and McDonald's discussing whether they'll need to up prices.
LOS ANGELES - Fast-food workers in California will make at least $20 an hour starting in Spring 2024.
Under Assembly Bill 1228, California's new fast-food minimum wage will kick into effect on April 1, 2024. This comes as Governor Gavin Newsom signed the fast-food minimum wage bill back in September 2023. At the time of signing the bill, fast-food workers in the state made at least $15.50 an hour, which was among the highest in the United States – only Washington state and Washington D.C. made more.
What will this mean for customers?
One of – if not the – biggest topics of discussion that surfaced about the minimum wage raise is whether it will impact the menu prices at the drive-through lines. In previous FOX 11 reports, big companies like McDonald's and Chipotle have gone public about raising prices in the wake of the upcoming pay bump for their employees in California.
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Assembly Bill 1228 came about in the wake of the rising cost of living and most fast-food workers living at or below the federal poverty line. The bill stated the high cost of living prompted "the urgent and immediate need to provide fast food workers a living wage."
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