New California law raises minimum wage for fast food workers to $20 per hour

[BADecker]

Where is the best place to live right over the border outside of California, and then commute to a California fast-food job right over the border in California?


New California law raises minimum wage for fast food workers to $20 per hour


https://www.pbs.org/newshour/politics/new-california-law-raises-minimum-wage-for-fast-food-workers-to-20-per-hour
A new law in California will raise the minimum wage for fast food workers to $20 per hour next year, an acknowledgment from the state's Democratic leaders that most of the often overlooked workforce are the primary earners for their low-income households.

When it takes effect on April 1, fast food workers in California will have the highest guaranteed base salary in the industry. The state's minimum wage for all other workers — $15.50 per hour — is already among the highest in the United States.

Democratic Gov. Gavin Newsom signed the law Thursday amid a throng of cheering workers and labor leaders at an event in Los Angeles. Newsom dismissed the popular view that fast food jobs are meant for teenagers to have their first experience in the workforce.

"That's a romanticized version of a world that doesn't exist," Newsom said. "We have the opportunity to reward that contribution, reward that sacrifice and stabilize an industry."
...

[Hispo]

I was not even sure whether this article is real or not, because of the fact they decided this laws was going to start to be a reality in April 1th of the new year.

Also, many of us may have that vision about fast food jobs being an option for teens and young adults who are going through their first job, but in reality, there are many cases of adults which do not have formal education and need to resort to working at MacDonalds and other fast food establishments.

It was never a glamorous job, and I have read it is quite of a hard one, so I am happy for them. One also may wonder what impact on the Californian Economy this raise may translate to.

[Foxpup]

Where is the best place to live right over the border outside of California, and then commute to a California fast-food job right over the border in California?

I can see why you're excited by this news, and I think it's wonderful that there are well-paying career opportunities for even people of your intellectual capacity. Everyone deserves a living wage.

[Gyfts]

The government is terrible at gauging what the minimum price for labor should be -- minimum wage laws have always priced employers out of expanding their labor force and it raises prices on the consumers.

Watch as economist Thomas Sowell explains here: https://www.youtube.com/watch?v=kssBBNI_BZc

The number of jobs will be reduced, therefore someone who may have been able to work at 18 USD/hr wouldn't have the opportunity work as the employer would have been forced to pay 20 USD/hr. Having a job at a low wage is better than not having a job at a zero wage.

It will only be a matter of time until inflation makes the minimum wage meaningless, and then what? The California legislature continues to pull magic numbers out of thin air to gauge what the hourly wage of a fast food employee should be?

[Hispo]

Where is the best place to live right over the border outside of California, and then commute to a California fast-food job right over the border in California?

I can see why you're excited by this news, and I think it's wonderful that there are well-paying career opportunities for even people of your intellectual capacity. Everyone deserves a living wage.

While I understand it is easy to use this opportunity to joke on others. I would prefer if we did not imply people who work within the fast food industry is less intelligent than the average person. Actually, I have met with a neighbor who works at Macdonald's and he is quite a clever person who goes to college.

If anything, we could assume Badecker is excited because of this due to his plans to move to Mexico and commute to his job in the United States flipping burgers.

And it would be something to respect, to me each job is important.  

[Zlantann]

The government is terrible at gauging what the minimum price for labor should be -- minimum wage laws have always priced employers out of expanding their labor force and it raises prices on the consumers.

Watch as economist Thomas Sowell explains here: https://www.youtube.com/watch?v=kssBBNI_BZc

The number of jobs will be reduced, therefore someone who may have been able to work at 18 USD/hr wouldn't have the opportunity work as the employer would have been forced to pay 20 USD/hr. Having a job at a low wage is better than not having a job at a zero wage.

It will only be a matter of time until inflation makes the minimum wage meaningless, and then what? The California legislature continues to pull magic numbers out of thin air to gauge what the hourly wage of a fast food employee should be?

You made an important observation Gyfts. An increase in the minimum wage might not affect government institutions but the private sector always bears the burden. Some businesses might struggle to exist, which could lead to the fall of some of them. Increasing the minimum wage leads to an increase in the cost of running businesses which might lead to the reduction of staff strength. However these businesses will transfer the burden of the increase in operation cost to the consumers. The price of fast food will increase to cover this cost.

The last time the government increased the minimum wage in my country, my landlord visited me immediately. He congratulated me on the increase in my earnings and also informed me of his intention to increase my house rent. When I tried objecting, he drew my attention to the fact that there has been an increase in the price of almost everything in the country. Increasing the minimum wage is not the best economic strategy to improve the standard of living of workers.

[Hispo]

The government is terrible at gauging what the minimum price for labor should be -- minimum wage laws have always priced employers out of expanding their labor force and it raises prices on the consumers.

Watch as economist Thomas Sowell explains here: https://www.youtube.com/watch?v=kssBBNI_BZc

The number of jobs will be reduced, therefore someone who may have been able to work at 18 USD/hr wouldn't have the opportunity work as the employer would have been forced to pay 20 USD/hr. Having a job at a low wage is better than not having a job at a zero wage.

It will only be a matter of time until inflation makes the minimum wage meaningless, and then what? The California legislature continues to pull magic numbers out of thin air to gauge what the hourly wage of a fast food employee should be?

You made an important observation Gyfts. An increase in the minimum wage might not affect government institutions but the private sector always bears the burden. Some businesses might struggle to exist, which could lead to the fall of some of them. Increasing the minimum wage leads to an increase in the cost of running businesses which might lead to the reduction of staff strength. However these businesses will transfer the burden of the increase in operation cost to the consumers. The price of fast food will increase to cover this cost.

The last time the government increased the minimum wage in my country, my landlord visited me immediately. He congratulated me on the increase in my earnings and also informed me of his intention to increase my house rent. When I tried objecting, he drew my attention to the fact that there has been an increase in the price of almost everything in the country. Increasing the minimum wage is not the best economic strategy to improve the standard of living of workers.

There was a time here in Venezuela when regular increases of the minimum wage would lead towards an even rougher increase of the goods and services, not only because the reasons you mentioned, but also because our currency has been losing and sustancial percentage of the value through time.

I am talking about prices of food increasing 100% in less than a week, people were desperate to buy as soon as possible or exchange for foreign currency. In such situations, it is not enough to increase the salary, enhancing production is a must, so the law of supply and demand won't flat the new salary.

First one increased production and then after it has been successfully increased, one can increase minimum wage.

[DeathAngel]

It’s a good thing because the cost of living has soared so much. People need to be able to keep a roof over their heads & put food on the table. Nobody who works full time should be living in poverty so this should be seen as a good thing.

[Gozie51]

The state's minimum wage for all other workers — $15.50 per hour — is already among the highest in the United States.

This is surely a good news for the chef guys and those in that industry at $20 per hour but this is my concern above. If there is difference between those in the fast food industry and the general work force minimum wage, I think that will cause new chase of job to fast foods and abandoning of old jobs which will bring a little complications to employers. Workers like higher pay so maybe it should be made uniform . However, I understand it was meant to create value in the fast food workers so they are not treated as less value area to work in.

[BADecker]

Where is the best place to live right over the border outside of California, and then commute to a California fast-food job right over the border in California?

I can see why you're excited by this news, and I think it's wonderful that there are well-paying career opportunities for even people of your intellectual capacity. Everyone deserves a living wage.

While I understand it is easy to use this opportunity to joke on others. I would prefer if we did not imply people who work within the fast food industry is less intelligent than the average person. Actually, I have met with a neighbor who works at Macdonald's and he is quite a clever person who goes to college.

If anything, we could assume Badecker is excited because of this due to his plans to move to Mexico and commute to his job in the United States flipping burgers.

And it would be something to respect, to me each job is important.  

Actually, I was thinking about the States. But Mexico might prove to be a good idea. Think of living in Tijuana and bicycling to San Ysidro every day. Might be able to find an apartment that is only a couple of miles from the burger flipping joint.

Thanks for the idea. I was always wanting to catch up on my Spanish speaking. Now I have an excuse to do it.

Apartment rentals at about $500/mo. Another $500/mo for living expenses - getting much of my food for free at the FF place where I work. And income at about $2,400/mo. More money to buy Bitcoin.

[OgNasty]

I know I’m getting old because I still think of fast food workers as making sub-$10/hr. Seeing them making over $40K a year is a sign that I’ve been around a long time. When I was younger a $40K/year job was considered professional and a nice living you could own a home and take vacations with. Now $20/hr is considered barely making it. This is what they did to us with the covid lie.

[larry_vw_1955]

The state's minimum wage for all other workers — $15.50 per hour — is already among the highest in the United States.

This is surely a good news for the chef guys and those in that industry at $20 per hour ....

in order to really making a living someone has to make about $60,000 per year. maybe even more if they live in new york city or somewhere like that. including california. places like that have a high cost of living. $20 per hour isn't going to get someone to $60,000 per year. they won't even be making $40,000 per year. but of course, people are not valued and they are treated like disposable commodities which they are if they work in the fast food industry. that obviously should change...

take out federal taxes and social security taxes and they'll be lucky to be bringing home $650 per week.

[Hispo]

Where is the best place to live right over the border outside of California, and then commute to a California fast-food job right over the border in California?

I can see why you're excited by this news, and I think it's wonderful that there are well-paying career opportunities for even people of your intellectual capacity. Everyone deserves a living wage.

While I understand it is easy to use this opportunity to joke on others. I would prefer if we did not imply people who work within the fast food industry is less intelligent than the average person. Actually, I have met with a neighbor who works at Macdonald's and he is quite a clever person who goes to college.

If anything, we could assume Badecker is excited because of this due to his plans to move to Mexico and commute to his job in the United States flipping burgers.

And it would be something to respect, to me each job is important.  

Actually, I was thinking about the States. But Mexico might prove to be a good idea. Think of living in Tijuana and bicycling to San Ysidro every day. Might be able to find an apartment that is only a couple of miles from the burger flipping joint.

Thanks for the idea. I was always wanting to catch up on my Spanish speaking. Now I have an excuse to do it.

Apartment rentals at about $500/mo. Another $500/mo for living expenses - getting much of my food for free at the FF place where I work. And income at about $2,400/mo. More money to buy Bitcoin.

Certainly there will be more places in Mexico which are way cheaper than the average rent in Californians cities. I would have never assumed you knew some Spanish, not sure whether you are being sarcastic or not.

Also, I am pretty sure we are not the only ones who had such idea, people with dual nationality (Mexico-US), already is considering this possibility to save money while living by the border.

I know I’m getting old because I still think of fast food workers as making sub-$10/hr. Seeing them making over $40K a year is a sign that I’ve been around a long time. When I was younger a $40K/year job was considered professional and a nice living you could own a home and take vacations with. Now $20/hr is considered barely making it. This is what they did to us with the covid lie.

Does not have anything to do with age, one simply loses to ability to keep up to the pace of the economical factors like inflation, min wage, etc.
It had happened to me several times here in my country, due to the economical nonsense we had to go through.