CA Fast Food Layoffs Over New $20 Minimum Wage Causing Panic

California will start making certain employers pay their workers $20 an hour beginning Monday, April 1st.

WHICH WORKERS WILL GET $20 MINIMUM WAGE?

In California, certain fast food employees will be able to receive a $20 an hour minimum wage. These employees include those who work at a limited-service or no-seating establishment or a restaurant that has less than 60 franchise locations in America.

Business locations performing only administrative, warehouse, or food preparation work are not counted as “establishments” toward the 60 establishment minimum. - State of California Department of Industrial Relations

The new minimum wage law is already leading to many workers and delivery drivers getting fired or having their work schedule hours reduced starting next week.

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Some California fast food locations are even halting their delivery services, according to USA Today, based on a Fox Business News story.

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WHAT DOES THIS MEAN FOR FAST FOOD RESTAURANT CUSTOMERS IN CALIFORNIA?

These new wage requirements will no doubt make affected fast food establishments pass that rising cost to their customers.

You don't have to live in California to be impacted by this new wage shift. Whether you are a resident or a tourist, this means we should expect to pay even more at the drive-thru and other fast food locations.

The new $20 minimum wage for fast food spots in California is not supposed to affect restaurants that serve foods that are "baked, cooked, or heated at home" for less than 50% of the time.

IS THE CALIFORNIA FAST FOOD MINIMUM WAGE HIKE A GOOD THING FOR EMPLOYEES?

The employees who are fortunate enough to still retain their jobs will benefit because the cost of living in California is the highest in America.

One report says the cost of living is 38% higher in California than the national average.

Only Tacoma, Wash., has a higher minimum wage ($20.39 per hour).

There are certain exceptions to the definition of a fast food worker, including ones who are employed by certain bakeries and others.

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