In just a week, fast-food workers in California will start earning $20 an hour, which is a big jump from the current $16 minimum wage. This change affects over half a million workers across the state. While some folks are happy about it, others worry it might cause problems for businesses.
Right now, the federal minimum wage is stuck at $7.25 an hour, and lawmakers haven’t been able to agree on raising it. But California is taking matters into its own hands.
Supporters of the wage hike say it’s about time workers get paid better, while critics think it could hurt businesses. At places like In-N-Out in San Francisco, workers already start at $23 an hour, but at other fast-food joints, they might be making less—maybe $16, $17, or $18 an hour.
People have different opinions about the wage increase. Some, like San Francisco resident Terry Franklin, think it’s fair because the minimum wage has been too low for too long. Others, like visitor Juan Garcia, worry that prices might go up for everyone.
John Logan, a professor at San Francisco State University, believes the wage increase is a good start to improving conditions for fast-food workers. He thinks it might even inspire other states to do the same.
But not everyone is thrilled. Bruce Stimson, who owns Fisherman’s Pizzeria, is concerned that the higher wage might make it harder to find employees. And Alex Johnson, who owns Auntie Anne’s and Cinnabon locations, says it’ll cost him a lot more money to pay his workers $20 an hour.
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Johnson might have to lay off some employees or even shut down some of his stores because of the extra costs. Plus, he’ll probably have to raise prices, which he doesn’t want to do.
Professor Logan isn’t sure if the wage increase will lead to job losses or fewer hours for workers. But he believes that the fast-food industry, being so profitable, can afford to pay its workers more.
So, while the $20 minimum wage might mean more money for some workers, it could also bring challenges for businesses across California.
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