California fast food workers to get $20 minimum wage under new deal between labor and the industry

Most fast food workers in California would get a $20 minimum wage next year — a nearly $5 per hour raise — under a deal announced Monday between labor unions and the industry that will avoid a costly referendum on the November 2024 ballot.

The mandatory raise would apply to all fast food restaurants in California that are part of a chain with at least 60 locations nationwide. It does not apply to restaurants that operate a bakery and sell bread as a stand-alone menu item, such as Panera Bread. The $20 wage would start April 1 and a council would have the power to raise it each year through 2029.

The agreement ends a tense standoff between labor unions and the fast food industry that started last year when Democratic Gov. Gavin Newsom signed a law creating a Fast Food Council with the authority to raise wages of fast food workers up to $22 per hour. California's current minimum wage for all industries in the state is $15.50 per hour.