California will consider raising fast-food minimum wage to $20.70

CALIFORNIA – The California Fast Food Council, a governing body established under Assembly Bill 1228, voted February 26, to consider a 70 cent increase for fast-food workers that would bring the minimum wage rate to $20.70.

The council, which includes fast-food workers, franchise owners, and state officials, agreed to discuss raising wages to match the cost of living at a future meeting.

Starting January 1, 2025, the council has the option to raise the minimum wage for fast-food workers by up to 3.5% or match yearly inflation, but they are not required to.

More than 1,000 local restaurant owners oppose further increases

AB 1228, which applies to fast-food restaurants with more than 60 stores nationwide, raised the minimum wage from $16 to $20 per hour for workers effective 2024.

Many restaurant owners expressed concerns that this increase would lead to higher operating costs.

In January, Save Local Restaurants, a coalition of industry groups, sent a letter to Governor Gavin Newsom, with over 1,000 restaurant owners expressing strong opposition to further wage increases.

According to the coalition, a poll taken in 2024 showed that 98% of restaurant owners reported raising food prices and 89% reported reducing employee hours.

“It’s unfair to single out local restaurant owners – yet again – for higher wages that no other industry is forced to pay,” said the coalition in the letter.

Next meeting will be for further discussion

The Fast Food Council is part of a broader effort to address wages, benefits, and working conditions in the fast-food industry.

The council’s next meeting, likely in April or May, will be for more discussion, but no decision or vote will be made.