California's Fast Food Workers Just Scored a Huge Win—Here's How Other States Compare

Half a million fast-food workers in California will soon make the highest minimum wage of any state in the country.

In a historic move, California Governor Gavin Newsom signed legislation to bump the minimum wage for fast food workers to $20 per hour, effective April 1, 2024. Newsom signed the bill into law Thursday, surrounded by cheering workers and labor leaders at an event in Los Angeles.

The move follows hundreds of strikes over the past couple of years, as fast-food workers and labor unions pushed for better wages and working conditions. The increase is significant– the state's fast food workers are currently paid $16.60 per hour, or just over $34,000 per year, according to the U.S. Bureau of Labor Statistics.

"California is home to more than 500,000 fast-food workers who—for decades—have been fighting for higher wages and better working conditions," Newsom said in a statement. "Today, we take one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast-food workers a stronger voice and seat at the table."

The legislation, AB 1228, marks a compromise between labor and business sectors, with labor unions retracting their bid to hold fast-food corporations accountable for franchisee misconduct in return for the wage hike. Fast food workers at restaurants with 60 or more locations across the country will receive the new minimum wage. Eateries that produce and offer their own bread, such as Panera Bread, are exempt.

The law additionally authorizes the Fast Food Council to set standards for minimum wage, working conditions, health and safety and training. The council's authority will remain in effect until January 1, 2029.

"From day one of our movement, we have demanded a seat at the table so we could improve our pay and working conditions," Ingrid Vilorio, a California fast food worker and leader in the Fight for $15 said.

Minimum Wage, Economy and 2024:

The relationship between minimum wage and inflation has long been a topic of debate among economists and policymakers. As the 2024 election approaches, the economy remains a top issue.

With the recent push to raise the federal minimum wage to $15 per hour, the debate around its potential impact on inflation has intensified. Proponents argue that a higher minimum wage can boost consumer spending, drive economic growth, and reduce income inequality. Detractors, however, warn of potential job losses, especially among small businesses, and the aforementioned inflationary concerns.

Minimum Wage by State

Statewide, California's minimum wage is $15.50 and is set to increase to $16 per hour for all employers on January 1, 2024—making it the second-highest rate in the nation.

Below is a list showing current minimum wage by state, according to data from the U.S. Department of Labor.

• Alabama: No state minimum wage law. Federal minimum wage of $7.25 per hour applies.
• Alaska: $10.85 per hour
• Arizona: $13.85 per hour
• Arkansas: $11.00 per hour
• California: $15.50 per hour
• Colorado: $13.65 per hour
• Connecticut: $15.00 per hour
• Delaware: $11.75 per hour
• Florida: $11.00 per hour (scheduled to increase to $12.00 on September 30, 2023)
• Georgia: $5.15 per hour (Federal minimum wage of $7.25 applies if higher)
• Hawaii: $12.00 per hour
• Idaho: $7.25 per hour
• Illinois: $13.00 per hour
• Indiana: $7.25 per hour
• Iowa: $7.25 per hour
• Kansas: $7.25 per hour
• Kentucky: $7.25 per hour
• Louisiana: No state minimum wage law. Federal minimum wage of $7.25 per hour applies.
• Maine: $13.80 per hour
• Maryland: $13.25 per hour (for employers with 15 or more employees), $12.80 (for employers with fewer than 15 employees)
• Massachusetts: $15.00 per hour
• Michigan: $10.10 per hour
• Minnesota: $10.59 per hour (for large employers), $8.63 (for small employers)
• Missouri: $12.00 per hour
• Mississippi: No state minimum wage law. Federal minimum wage of $7.25 per hour applies.
• Montana: $9.95 per hour (for businesses with gross annual sales of more than $110,000), $4.00 (for businesses with gross annual sales of $110,000 or less)
• Nebraska: $10.50 per hour
• Nevada: $11.25 per hour (if no qualifying health insurance is offered), $10.25 (if qualifying health insurance is offered)
• New Hampshire: $7.25 per hour
• New Jersey: $14.13 per hour
• New Mexico: $12.00 per hour
• New York: $14.20 per hour; $15.00 (for Long Island, Westchester & NYC)
• North Carolina: $7.25 per hour
• North Dakota: $7.25 per hour
• Ohio: $10.10 per hour (for employers with annual gross receipts of $372,000 or more), $7.25 (for employers with annual gross receipts under $372,000)
• Oklahoma: $7.25 per hour (for employers with ten or more full-time employees or annual gross sales over $100,000), $2.00 (for all other employers)
• Oregon: $14.20 per hour (standard state rate); $15.45 (Portland Metro Area); $13.20 (Non-Urban counties)
• Pennsylvania: $7.25 per hour
• Rhode Island: $13.00 per hour
• South Carolina: No state minimum wage law. Federal minimum wage of $7.25 per hour applies.
• South Dakota: $10.80 per hour
• Tennessee: No state minimum wage law. Federal minimum wage of $7.25 per hour applies.
• Texas: $7.25 per hour
• Utah: $7.25 per hour
• Vermont: $13.18 per hour
• Virginia: $12.00 per hour
• Washington: $15.74 per hour
• West Virginia: $8.75 per hour
• Wisconsin: $7.25 per hour
• Wyoming: $5.15 per hour (Federal minimum wage of $7.25 applies, if higher)
• District of Columbia: $17.00 per hour

*Data compiled on 9/28/2023.

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