Compromise Reached Between California Fast-Food Industry and Unions over Pay Hikes

Fast-food workers in California are set to receive pay increases following a compromise between the restaurant industry and unions. Under the deal, a nine-person council will determine future wage hikes in the fast-food industry through 2029. Starting April 1, California workers at fast-food chains with at least 60 locations nationwide will have a wage floor of $20. The council will have the authority to annually raise the minimum wage by 3.5% or the consumer price index change from 2025 to 2029. The agreement resolves a battle that had the potential to escalate for years and cost the restaurant industry over $100 million. The compromise protects local restaurant owners and avoids joint-employer liability changes for franchised businesses.