Fast-food workers in California will see pay increases starting next year after a compromise was reached between the restaurant industry and unions. The deal, brokered with the help of Gov. Gavin Newsom’s office, establishes a nine-person council that will determine future wage hikes for the fast-food industry in California until 2029. Starting April 1, 2023, the minimum wage for California fast-food workers at chains with at least 60 nationwide locations will be $20 per hour.
The council will have the authority to raise the minimum wage annually by either 3.5% or a change in the consumer price index. The deal ends a potentially lengthy battle that could have cost the restaurant industry over $100 million. While the wage increases will impact fast-food operators, industry analysts believe the agreement has avoided more severe consequences.