How $20 fast food minimum wage impacts the Central Valley
FRESNO, Calif. (KSEE/KGPE) – Fast food workers in California are now making $20 an hour after a new law went into effect Monday.
While some are calling the pay hike a big win for workers it could come at a cost to consumers.
Dillion Savory with Central Labor Council is calling the milestone a victory for employees who often get overlooked.
“Imagine being able to come off public assistance programs and provide braces for your kids or, you know, get that extra bedroom in that, housing space that you’re living in. That’s what it means for folks, is being able to just get that one step up,” said Savory.
The law applies to fast-food companies with 60 or more locations in the U.S.
It also creates a fast food council that can make future increases to the minimum wage and adopt new industry standards.
For others that run franchise fast food chains like Kris Stuebners with JEM Restaurant Management Corporation, the pay raise is causing a financial headache.
“We’re paying the workers comp payroll taxes on that, we’re paying the payroll taxes on the fort dollars plus we have to raise our various levels of management above that 20 dollars so it’s a big increase,” said Stuebners.
To offset the rise in labor Chipotle, Mcdonald’s, and Starbucks have all stated publicly they will raise prices and are also likely to cut jobs to reduce labor costs.
Stuebners says his company’s Wendy’s location off of Blackstone and Spruce avenues will most likely have to raise their prices.
“We’re trying to limit very strategically in our pricing to help cover the cost but it won’t cover all the cost,” Stuebners continued.
But for many consumers, their love of food will keep them swallowing the costs.
“I think I’ll be a little more strategic on where I spend it but I think I will continue to still like my favorites and be a true fan,“ said Devyn Fanz.
The law will not apply to food chains in airports, museums, and event centers.
