California is one of the states with the highest minimum wage in the nation, and it is set to increase further in 2024. The statewide minimum wage will rise to $16 an hour on Jan. 1, 2024, up from $15 in 2023. This is part of a gradual increase that was signed into law by former Gov. Jerry Brown in 2016, which aims to reach $15 an hour for all employers by 2023, and then adjust annually based on inflation.

However, some workers in California will see an even higher minimum wage in 2024, thanks to two new laws that were passed in 2023. These laws target two specific industries: fast food and health care, and they will raise the minimum wage for workers in those sectors above the statewide level.

Fast Food Workers

Fast food workers in California will earn a minimum of $20 an hour starting from April 1, 2024. This applies to workers at fast food chains that have more than 60 locations nationwide, such as McDonald’s, Burger King, and Starbucks. The new law was supported by major fast food chains, which agreed to drop a ballot initiative that would have made them liable for labor violations by their franchisees. The law was also backed by unions, which hope to organize more fast food workers and improve their working conditions.

The fast food minimum wage will be adjusted annually by either 3.5% or inflation, whichever is less, starting from Jan. 1, 2025. The law also establishes a Fast Food Council, which will consist of representatives from the industry, labor, and government, and will oversee the implementation and enforcement of the law.

The fast food minimum wage is expected to benefit about 600,000 workers in California, many of whom are low-income, immigrants, or people of color. Supporters of the law argue that it will reduce poverty, boost consumer spending, and improve public health. Opponents of the law warn that it will increase costs, reduce jobs, and hurt small businesses.

Health Care Workers

Health care workers in California will also see a higher minimum wage in 2024, but the amount will vary depending on the type and size of the facility they work for. The new law covers workers at hospitals, nursing homes, clinics, and other health care facilities, and it will take effect on June 1, 2024.

The health care minimum wage will range from $18 to $23 an hour, depending on the following factors:

• The number of full-time employees at the facility. Larger facilities with more than 10,000 employees will have to pay $23 an hour, while smaller facilities with less than 100 employees will have to pay $18 an hour.
• The location of the facility. Facilities in urban areas will have to pay more than facilities in rural areas, based on the regional cost of living.
• The type of facility. Facilities that provide acute care, such as hospitals, will have to pay more than facilities that provide long-term care, such as nursing homes.

The health care minimum wage will increase by $1 an hour every year until it reaches $25 an hour for all facilities by 2033. The law also creates a Health Care Facility Council, which will have similar functions and composition as the Fast Food Council.

The health care minimum wage is expected to affect about 300,000 workers in California, many of whom are women, immigrants, or people of color. Supporters of the law claim that it will improve the quality of care, reduce turnover, and attract more workers to the industry. Opponents of the law contend that it will increase costs, reduce access, and hurt small facilities.

Conclusion

California is leading the nation in raising the minimum wage for millions of workers, especially in the fast food and health care industries. These new laws aim to improve the living standards, working conditions, and economic opportunities for some of the most vulnerable and essential workers in the state. However, these laws also face criticism and challenges from some employers, business groups, and economists, who fear that they will have negative consequences for the economy, the labor market, and the consumers. The impact of these laws will be closely monitored and evaluated in the coming years, as they will shape the future of work and wages in California and beyond.