Fast food workers in California will benefit from a minimum wage rise that is due to come into effect in a week's time—but franchises have warned that its implementation could force them to increase their menu prices.
On April 1, fast-food restaurants will be required to pay employees at least $20 an hour, up from $16 as of January and $15.50 in 2023. The new law, signed by Democratic California Governor Gavin Newsom in September, will also see minimum wages for health care employees go up from June 1.
While proponents of the new minimum wage said the lowest-paid workers' labor had been undervalued for too long, business owners have warned that the pay hikes could have an impact on margins and consumer costs at a time when the cost of living remains a concern for many.
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