financetom
Economy
financetom
/
Economy
/
California could bump fast-food minimum wage to $20.70
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
California could bump fast-food minimum wage to $20.70
Feb 26, 2025 4:03 PM

(Reuters) - One year after California introduced a first-of-its-kind $20 minimum wage for fast-food workers, an increase of up to 70 cents is slated for a vote.

California's Fast Food Council, comprised of fast-food workers, restaurant owners and state officials, approved a motion Wednesday to consider a cost-of-living-adjustment at an upcoming meeting.

The Council's next meeeting, expected to take place in April or May, will be for further discussion and not see a vote taken on a decision about it.

Before the vote, the Council heard scores of public comments.

Business owners said not enough time has passed since the $20 minimum wage went into effect to study the effects, which they say has already led to higher consumer prices and less jobs for workers.

Workers and labor advocates said the increase was needed to address rising costs of living in one of the country's most expensive states to live.

Veronica Gonzales, a fast-food worker, spoke remotely from a room full of workers organized under the California Fast Food Workers Union's San Jose chapter. Through a translator, she said in Spanish that the cost of her rent and her medicine has gone up.

"I cannot live with this wage," she said.

The possibility of a wage increase, which would be the first for the Council since the state created it last year alongside the $20 fast-food minimum wage, has become a flashpoint in a growing debate about California's unique effort to regulate the fast-food industry.

California is home to more than half a million fast-food workers, more than any other U.S. state.

California's law empowers the Council to regulate fast-food restaurants that are part of chains with more than 60 locations nationwide, including wage increases every year of either 3.5% or the increase in the consumer price index, whichever is smaller.

When the California legislature first approved a fast-food-specific minimum wage in 2022, McDonald's USA President Joe Erlinger opposed the measure in a public letter that said it "should raise alarm bells across the country" because it had the potential to influence other states into making similar laws.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
U.S. CPI Unexpectedly Rises to 3.2% Annual Pace in February
U.S. CPI Unexpectedly Rises to 3.2% Annual Pace in February
Mar 12, 2024
The U.S. Consumer Price Index rose faster than expected last month, with the year-over-year pace up to 3.2% versus estimates for 3.1% and January's 3.1%, the government reported Tuesday morning. The core rate – which strips out food and energy costs – dipped a bit, but also disappointed to the upside, coming in at 3.8% against expectations of 3.7% and...
Inflation Rises More Than Expected To 3.2% In February, Rebuffs Expectations Of June Fed Rate Cut
Inflation Rises More Than Expected To 3.2% In February, Rebuffs Expectations Of June Fed Rate Cut
Mar 12, 2024
The U.S. consumer price index exceeded expectations in February, mirroring the robust performance seen in January and casting doubt on the imminent commencement of interest rate cuts by the Federal Reserve. In February 2024, the inflation rate climbed to 3.2% compared to the previous year, as disclosed by the Bureau of Labor Statistics on Tuesday. Here are the key highlights...
Gasoline, shelter costs lift US consumer prices in February
Gasoline, shelter costs lift US consumer prices in February
Mar 12, 2024
(Refiles to insert dropped word in paragraph one) WASHINGTON (Reuters) -U.S. consumer prices increased solidly in February amid higher costs for gasoline and shelter, suggesting some stickiness in inflation that could delay an anticipated June interest rate cut from the Federal Reserve. The consumer price index (CPI) rose 0.4% last month after climbing 0.3% in January, the Labor Department's Bureau...
Sticky Feb US CPI inflation raises questions about June Fed cut
Sticky Feb US CPI inflation raises questions about June Fed cut
Mar 12, 2024
NEW YORK (Reuters) - U.S. consumer prices increased solidly in February amid higher costs for gasoline and shelter, suggesting some stickiness in inflation that could delay an anticipated June interest rate cut from Federal Reserve. The consumer price index (CPI) rose 0.4% last month after climbing 0.3% in January, the Labor Department said on Tuesday. Gasoline and shelter, which includes...
Copyright 2023-2026 - www.financetom.com All Rights Reserved