California’s $20 Minimum Wage Law Takes Effect, Causing Confusion, Layoffs, and Price Hikes
2nd April 2024
California’s $20 minimum wage for fast food workers became law Monday and quickly caused chaos, with pizza chains preparing to cut hundreds of employees, ice cream and pretzel shop franchisees struggling to learn if the law applies to them, and industry leaders eyeing price hikes in the state.
California governor Gavin Newsom (D.) last week signed more carve-outs for the law, which already exempted bakeries and chains inside grocery stores, adding increased confusion over which franchisees must comply with the mandate.
The chaos over the law could deal a political blow to Newsom, who became the face of negotiating the $20 fast food wage as a “compromise” between unions and business interests. Newsom, whose approval ratings have tumbled in recent months, signed the legislation last September after a rushed and secretive process, but critics say the fallout is only beginning.