California recently passed a fast food law that is making fast food more expensive. The state of California through the legislator signed by the governor has determined that there needs to be wage regulation in the fast food business.
The bill was authored by Assemblywoman Lorena Gonzalez, a San Diego Democrat.
The new law creates a ten person council four from the fast food industry, four representing employees and two appointed by the governor.
This council will be charged with fixing compensation with some limitation on how much fast food workers will make.
Today the minimum wage in California is $ 15.50 an hour and the limit they are allowed to put in effective 2023 would be $22 an hour and most people believe this council will be looking at putting a $22 wage in effect for all of the fast-food workers in California.
With the cost of social security and the likes if we put it at an $8 increase and you have a fast food business with 10 employees and you are open 16 hours a day it’s going to cost you and extra $ 1200 a day.
This will have the effect of increasing the cost of doing business for fast food franchises in California.
This in effect will led to an increase in the price of fast foods which will then be transferred to the customer.
The question then is will the customer be willing to pay more for the same food.
The other question is what will the effect of increasing the minimum wage of some of the lowest income earners from $ 15.50 to $22 per hour be on virtually every job across the state of California?
The third question is how will the businesses who are most likely to be affected by this, the small business, react?
Finally, how will the restaurant industry which employs a large number of people in the state of California be affected?
Others have argued that the bill which covers only companies that have 100+ locations will not affect small businesses.
Many people have different opinions on this matter. Some say that it is a good thing because it will help out those who are working for minimum wage and not making very much money. Others say that it is a bad thing because it will make the cost of food go up and make it harder for people to afford to eat out.
What is clear is that this law will affect all businesses across the state including small family owned restaurants whose employees are likely to look for better pay elsewhere if fast food restaurants start paying $22 an hour.
