SAN DIEGO — Fast food workers here in the Golden State are set to receive a major pay raise this year, increasing to a minimum of $20 an hour in California.
While supporters say this move is a long time in coming, others say this new law could end up hurting many of the workers it's intended to help. This major boost to fast food workers' minimum wage here in California is set to take effect in April. But some fast food chains like Pizza Hut are already responding by cutting jobs.
California minimum wage increase
Some say they wish the change happened sooner.
"A first I was like, really? After I leave, they decide to do this?" laughed San Diegan Noah Davidson-Mendiola, who recently quit his job at McDonald's.
He's in full support of this move to raise fast food worker's minimum hourly wage to $20 an hour.
"I'm both happy, because fast food workers really don't get paid enough," he added, "but it's also like, come on, you should have done this a long time ago!"
While this pay hike applies to fast-food businesses with more than 60 locations nationwide, some analysts believe that it will spur other businesses to follow suit.
"Everyone else has to match, right?" said restaurant analyst Nick Setyan, "because if you can work at McDonald's or Starbucks for $20 an hour. Why would stay in the kitchen at an Olive Garden or even at Walmart?"
However, not everyone see this particular move targeting fast-food chains as the right one.
"I wouldn't say I'm particularly in favor of it, but I understand at the same time that for a lot of these people they can't afford to live here," said San Diegan Dale Young, a retired small business owner.
He believes more needs to be done to stabilize the overall economy, and not just this particular sector of the labor pool.
"It's a Band-aid," he added, "I mean when is it going to stop? Next year are they going to raise it to $25 an hour?"
He also pointed out that this mandatory pay increase will force some businesses to cut jobs to maintain their bottom line.
"It depends on if your company is producing and making money, then i guess you can accept the pay hike," he told CBS 8, "but then obviously there are a lot of businesses that can't afford that."
Case in point: Pizza Hut, which has announced that it will lay off more than 1200 delivery drivers at hundreds of franchises across the state before the new law takes effect.
Pizza Hut, whose parent company Yum! Brands also owns Taco Bell, recently told Business Insider:
"Our franchisees independently own and operate their restaurants in accordance with local market dynamics and comply with all federal, state, and local regulations while continuing to provide quality service and food to our customers via carryout and delivery."
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