KCRW - CA’s fast food workers will start earning $20/hr. Is that enough?

Open Markets’ chief economist Brian Callaci was quoted on an April wage hike for fast food workers in the state to $20 an hour.

“Let's not lose sight of the fact that these are life-changing raises, and that's a huge positive, and it's good for the economy,” Callaci said. 

On April 1, California’s fast food workers will begin earning $20 an hour — the highest minimum wage in the country for this industry. That will affect workers, franchise owners, and customers. Here’s a breakdown of what it could mean for each group.

Who does this new $20 an hour minimum wage apply to within the fast food industry?

It applies to workers employed by fast food chains that have more than 60 locations nationwide. Currently, the only exceptions are locations that have on-site bakeries. There was some recent drama over this after Bloomberg reported that Panera Bread would qualify for the exception, and the owner of the chain is a political ally of Governor Gavin Newsom. Newsom denies playing favorites, and Panera Bread says it will honor the new minimum wage, but Republican lawmakers are calling on the state attorney general to investigate. 

That aside, this will affect a lot of workers in a state where the minimum wage is currently $16 an hour. The number of fast food workers in California totaled 394,660 in 2022, according to the most recent data from the Bureau of Labor Statistics. They are also the second largest group of minimum wage workers in the state behind home health aids, according to a 2024 report by California’s nonpartisan Legislative Analyst's Office.

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