Debate is hot about the impact of a higher minimum wage. Half a million Californians work in fast-food, where wages had stagnated for decades. Restaurant owners warn of higher prices and fewer hours.
California fast-food workers cooking Big Macs or whipping Frappuccinos willThe new state minimum uniquely focuses on a particular segment, fast food, affecting some of the country's biggest chains, including McDonald's, Starbucks, Subway and Pizza Hut.are estimated to work in fast food here, mostly women, immigrants and people of color. Many live below the poverty line.
"It's super great," says Jauregui, 52, speaking in Spanish."At the very least it'll give me some breathing room ... and make it easier to pay the rent and other bills."But the dramatic pay raise has also touched off a heated debate about the impact on local businesses. Smaller franchise restaurant owners warn they'll have to raise prices, reduce worker's hours, cut jobs or even close shop.
"I am used to being a champion of labor and I'm in this odd position," says Michaela Mendelsohn, a longtime advocate for LGBT workers and also owner of six El Pollo Loco restaurants with about 170 employees. "We're having to get more efficient," Mendelsohn says."So really what's left is ... to reduce labor hours. And I hate saying that."Broadly, California often sets the bar for many business decisions that other states later follow. Advocates hope something similar will happen with fast-food pay – spreading to other industries in the state and across the country.
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