New $20 minimum wage for fast food workers in California set to start Monday

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New $20 minimum wage for fast food workers in California set to start Monday
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Most of California's fast food workers are set to be paid at least $20 per hour.

An employee collects payment at an Auntie Anne's and Cinnabon store in Livermore, Calif., Thursday, March 28, 2024. He's among hundreds of thousands of California fast-food workers who will be paid at least $20 an hour starting Monday, April 1.

Alex Johnson owns 10 Auntie Anne's Pretzels and Cinnabon restaurants in the San Francisco Bay Area. He said sales have slowed in 2024, prompting him to lay off his office staff and rely on his parents to help with payroll and human resources. “I have to consider selling and even closing my business,” he said. “The profit margin has become too slim when you factor in all the other expenses that are also going up.”

“I was surprised at how little, or how difficult it was to find disemployment effects. If anything, we find positive employment effects,” Reich said.

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