‘Definition of Stupidity’: California Considers Further Rise in Fast Food Minimum Wage

There’s talk about bumping it up another 3.5% as the California Food Council gears up for a heated discussion soon, with insights from Restaurant Business lighting the way.

With the average house price in San Jose being over $1.7 million and the average monthly energy bill just under $300, many Californians are struggling to make ends meet.

However, this can vary from state to state. Some states, such as Wisconsin and Oklahoma, keep minimum wage employees on the federal amount. However, other states, such as New York and Nevada, have set their minimum wage amounts. New York minimum wage workers get $16 an hour, and Nevada’s minimum wage workers get $11.25 an hour.

He’s quoted in The New York Post saying, “The definition of stupidity is doing the same thing repeatedly and hoping for a different result.” His worry? More wage hikes might mean fewer jobs in fast food.

Known for setting up the council behind these wage pushes, he’s now on lists as a possible presidential contender, adding a political twist to the wage discussions.

The exemption was that outlets with an on-site bakery or that sell bread as a standalone item on their menu wouldn’t have to raise their workers’ wages. As Panera Bread franchisee Greg Flynn has donated to Newsom’s campaigns, there were reports that Flynn was the reason behind the exemption. Newsom has strongly denied this.

These people argue that while raising the minimum wage may seem beneficial on the surface, as it would provide more money for people, it has disastrous consequences, such as job losses and outlet closures.

This jump from $16 is more than just a pay raise—it’s reshaping how the industry operates.

With the new proposal of a further minimum wage hike, California fast food workers will be paid well above other workers who work in similar capacities across the US.

Minimum-wage workers often struggle to make ends meet, so any increase in their wages is often well-received by them. It makes it easier to pay the bills and sometimes means they can drop other jobs they had to take on just to make ends meet.

Instead, they are now adults who need to afford their mortgage or rent, pay for healthcare and bills, and generally just be able to afford to live.

They’re tweaking prices too, up by as much as 8% according to Kalinowski Equity Research, reflecting the steep climb in labor costs.

This affects those on low incomes, especially low-income families, as they are their target audience, driving them to go elsewhere.

They should look at other ways to afford to pay this rise without also having to turn to layoffs. This could include methods such as reducing the amount of overtime staff can do.

Even though the prices here are a little more expensive than at fast-food restaurants, customers are willing to pay that price because they feel they are getting more for their money.

80% of Americans have said that fast food is now a luxury, but with the new proposed minimum wage hike, these numbers are only set to get worse.

These closures have been linked directly to the financial strain caused by the wage increases. 

This led many of these drivers to complain, as they didn’t see the point in raising wages if people were only going to lose their jobs.

They’re the brains behind the wage decisions, influencing a hefty slice of California’s economic pie.

As the chief of staff to a leading California senator, his single vote could tip the scales on this wage hike debate.

This may influence her stance and actions regarding wage policies. 

The California Fast Food Workers Union is championing firmer job security and guaranteed work hours, aiming to make fast food jobs more sustainable and less precarious.

Under California law, salaried employees earning less than twice the hourly minimum wage are entitled to overtime, potentially increasing their compensation. 

Set to possibly kick in at the start of the new year, this change could mark a significant shift in how California values the hands that serve its meals.