Fast food workers may finally get a pay raise with new state budget

Legislatures are still working to get fast food workers pay raises after the law was signed by Governor Gavin Newsom but delayed by opposing business groups.

The law was supposed to increase the salaries of fast-food workers from its $15.50 minimum wage to up to $22 per hour for some workers.

Governor Newsom signed the law last year but opposing parties were able to gather enough support for a referendum in 2024. This puts the law on hold until that happens.

These groups argued the wage increase would drive up inflation and hurt small businesses.

However, now there is a provision in the new state budget that would bring what's called The Industrial Welfare Commission back to life if voted on.

The commission regulates wages, hours, and working conditions in the state and essentially has the power to create orders for these factors. If the Commission finds wages cannot supply the cost of proper living, it can make recommendations and issue orders for pay raises.

If the state budget includes the revival of The Industrial Welfare Commission it would have to complete its work by the end of October 2024. This would be days before voters are scheduled to vote on the fast food law. If the commission is active, the decision cannot be blocked by voters.