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Fast-Food Minimum Wage Goes Up Next Week

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Sacramento, CA — A new state law requiring fast food workers’ minimum wage to jump to $20 per hour takes effect this coming Monday, April 1st.

Industry leaders say it will lead many fast-food restaurants to increase prices and/or potentially lay off some staff.

The pay increase established by Assembly Bill 1228 applies to California fast-food workers employed by any chain with over 60 locations nationwide, and includes corporate-owned and franchised locations.

California has an estimated 540,000 fast-food workers. The current minimum wage in the state, regardless of industry, is $16, so some workers could see a raise of up to 25% overnight.

In recent weeks, the California legislature has been voting on exemptions for the new law, including fast-food restaurants at airports, hotels, arenas, college campuses, museums, and casinos.