Los Angeles fast-food workers celebrate new $20 per hour wage
Los Angeles area fast-food workers celebrated their $20 an hour wage Friday on the heels of the statewide industry mandated increase.
The pay hike for California fast-food workers went into effect April 1, and is the highest minimum wage across the U.S. restaurant industry.
Inland Empire Wendy's employee, Demetrious McGowan, joined the celebration rally outside a Los Angeles McDonald's and said the pay increase takes a big weight off his shoulders.
"It's amazing, just to be able to know that I can live, like I can afford to have a place to stay right now and keep food in my fridge," McGowan said.
The new law, signed by Governor Gavin Newsom last fall, requires that fast-food chains with 60 or more locations nationwide pay their workers at least $20 an hour. This means the state's 553,000 fast-food workers will now earn more than the state's $16 minimum wage for all other industries.
There are supporters of the wage increase and dissenters.
Those in favor say the fast-food restaurant industry can support the cost, as menu prices have long been so much higher than operating costs.
A new analysis from the Roosevelt Institute shows booming earnings for the fast-food industry, with big chains like McDonald's enjoying strong revenue growth and wider profit margins in recent years.
Opposition comes from some California restaurant owners, who say that higher labor costs will lead to higher prices for customers, and even curb hiring.
The typical California restaurant is facing an additional expense of $250,000 annually to cover the April 1 wage hike, according to the Save Local Restaurants coalition, citing data from a McDonald's owner association.
Some California fast-food workers have banned together, forming the California Fast Food Workers Union. It is affiliated with the Service Employees International Union, a traditional union that represents workers in various industries.
David Green, SEIU 721 president, joined the Los Angeles celebration rally and said the wage increase is a big victory for working people.
"It's going to lift them out of poverty, it's going to lift them to a different level. It's going to give them rights they never had. It's going to give them a voice at the table, and a voice for working people all across the state of California, and I'm really excited," Green said.