$20 Minimum Wage Deal Reached For CA Fast Food Workers

CALIFORNIA — Fast food companies have reached a deal with labor groups that would pave the way for a $20 minimum wage for California's service industry workers, pending approval by state lawmakers.

As The New York Times reports, the deal averts a costly battle between the companies and labor groups, with the latter agreeing to withdraw a proposed ballot referendum and drop a provision in Assembly Bill 1228 that sought to make companies liable for labor violations by franchisees.

According to The Press-Enterprise, the modest pay hike would take effect in April, raising the average wage for more than 500,000 workers from $19 to $20. California's statewide minimum wage for other industries rises to $16 next year.

The agreement also sets the table for the implementation of a fast-food council with the authority to create new standards and recommendations to ensure worker safety, and the ability to raise the minimum wage further over the next five years.

CalMatters notes the agreement arrives after a two-year battle between unions and fast food giants, which has already seen millions spent, while securing higher wages and better industry oversight. State lawmakers must approve the deal before the legislative session ends on Thursday.