California fast-food businesses prepare for minimum wage increase in 2023

LOS ANGELES (KABC) — With California’s minimal wage set to extend on Jan. 1 to $15.50 per hour, the fast-food {industry} is bracing for doable modifications.

“Employers are dealing with greater rents, greater wage prices, excessive regulatory prices, so it is very troublesome for companies to do enterprise on this state,” stated Ken Miller, a professor at Claremont McKenna Faculty.

The quick meals {industry} additionally faces one other large change. A brand new legislation, AB 257, pushed by unions establishes a council that may regulate wages, hours and different working circumstances.

“The invoice offers fast-food cooks and cashiers the facility to lift the industry-wide minimal wage to as much as $22/hr,” SEIU stated in a press release. “Much like the state minimal wage, the {industry} minimal wage would alter yearly primarily based on the Shopper Worth Index.”

“As employers adapt to greater wage construction, they will more and more attempt to scale back their value by decreasing the headcount of their workforce and attempt to automate to the extent that they’ll,” Miller stated.

Union officers say the council would come with authorities officers, employees, franchise homeowners and company representatives.

“The employees will truly be on the desk with franchise homeowners, enterprise homeowners, legislators, labor to resolve these points,” stated David Inexperienced with SEIU Native 721.

However some companies might resolve it is too costly to remain in California.

“California now at $15.50 is greater than double Texas, Utah, Idaho, another competing states,” Miller stated. “If they’ll choose up and transfer loads of them are saying, ‘Why ought to we do enterprise on this state if we will do it extra cheaply someplace else.’”

There may be now a petition to dam AB 257.

If there are sufficient signatures that would go within the poll in 2024.