California's new law mandating a $20 minimum wage for fast food workers has drawn sharp criticism from Republicans, who warn it will lead to job losses as restaurants turn to automation. The law, effective from Monday, applies to national chains with at least 60 outlets, affecting brands like McDonald's, KFC, and Starbucks. It represents up to a 25% pay rise for many of the state's 500,000 fast food workers, who previously earned an average of $16.60 per hour.
Republican Representative Doug LaMalfa of California told DailyMail.com that the wage hike would drive up prices and reduce jobs. 'Employees are being replaced by self-checkout kiosks and soon robot cooks,' he said, adding that nearly everyone would be worse off. Senator Ted Cruz of Texas echoed these concerns on his podcast, arguing that the policy would disproportionately harm low-skilled, minority, and young workers. 'When you jack up the cost of labor, inevitably the result is people lose their jobs,' Cruz said.
The law, passed by Democrats last year, acknowledges that many fast food workers are adults supporting families, not teenagers. However, critics contend that entry-level jobs will vanish. Earlier this year, two major Pizza Hut franchisees in California laid off 1,200 delivery drivers, which some attribute to rising costs. The legislation originated from private negotiations between unions and the industry, with unusual confidentiality agreements.
The new minimum wage equates to an annual salary of $41,600, compared to the national median of $13.43 per hour for fast food workers in 2022. The law exempts restaurants in grocery stores, airports, and those selling bread as a standalone item. Smaller establishments are expected to feel indirect pressure to raise wages to compete.
