Let’s start of the new year with a little bit of news. As of January 1st, San Diego’s minimum wage increased by 55 cents, bringing the state-mandated average from $16.30 to $16.85, one of the highest across the state. Any worker who does more than 2 hours within a week at an establishment will see the raise, which was approved back in 2016 accordance with the city’s Earned Sick Leave and Minimum Wage Ordinance.
Minimum wage has steadily been increasing since 2019, with wages being determined by the cost-of-living expenses in each given city, which is calculated by the Consumer Price Index. As of now, Hollywood has the highest minimum wage in the state at $19.08, starting last summer. With San Diego now being the most expensive city in the nation, you would think wages would follow suit.
California’s statewide minimum wage is now at $16 and will continue to raise to $20 in April in ordinance with the state law Gov. Gavin Newsom signed in 2016.
California is home to more than 500,000 fast-food workers who – for decades – have been fighting for higher wages and better working conditions. Today, we take one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast-food workers a stronger voice and seat at the table,” said Newsom.
While the increase has been a source of celebraiton as it affects approximately more than one million workers, there’s a lot of apprehension about the increase. Some companies have already begun layoffs in an attempt to assuage the wage increase.
An example of this is the recent layoffs across Pizza Huts in California. In an effort to cut costs, Pizza Hut has essentially gotten rid of their delivery driver position, choosing now to ue third-party delivery apps. Still, consumers will feel the cost of this new change as apps like DoorDash and Uber Eats have plenty of fees of their own that consumers will have to pay. Other businesses are preparing to increase menu prices amid a time where inflation is already affecting consumers. Where there’s room for celebration, there’s also a bit of understandable worry as businesses try to shift.
What do you think about the news? Let us know!