LOS ANGELES (KABC) — With California’s minimal wage set to extend on Jan. 1 to $15.50 per hour, the fast-food {industry} is bracing for doable modifications.

“Employers are dealing with larger rents, larger wage prices, excessive regulatory prices, so it’s totally troublesome for companies to do enterprise on this state,” mentioned Ken Miller, a professor at Claremont McKenna School.

The quick meals {industry} additionally faces one other large change. A brand new legislation, AB 257, pushed by unions establishes a council that may regulate wages, hours and different working circumstances.

“The invoice provides fast-food cooks and cashiers the ability to boost the industry-wide minimal wage to as much as $22/hr,” SEIU mentioned in a press release. “Just like the state minimal wage, the {industry} minimal wage would regulate yearly primarily based on the Shopper Worth Index.”

“As employers adapt to larger wage construction, they’ll more and more attempt to cut back their value by lowering the headcount of their workforce and attempt to automate to the extent that they will,” Miller mentioned.

Union officers say the council would come with authorities officers, staff, franchise house owners and company representatives.

“The employees will truly be on the desk with franchise house owners, enterprise house owners, legislators, labor to unravel these points,” mentioned David Inexperienced with SEIU Native 721.

However some companies might resolve it is too costly to remain in California.

“California now at $15.50 is greater than double Texas, Utah, Idaho, another competing states,” Miller mentioned. “If they will decide up and transfer loads of them are saying, ‘Why ought to we do enterprise on this state if we are able to do it extra cheaply someplace else.'”

There may be now a petition to dam AB 257.

If there are sufficient signatures that would go within the poll in 2024.

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