Local fast food operators say a new $20 an hour minimum wage could drastically affect business, including the closure of stores.

“Surely, lower performing stores will need to make a business decision as to the viability of continuing or not,” said Ali Nekumanesh, executive vice president of Del Delicious.

However, a local labor leader says the fast food industry is painting a false narrative about the impacts of a higher minimum wage.

“I think it’s pretty common for industry leaders to criticize efforts to bring people out of poverty in their particular industries as job killers,” said Dillon Savory, executive director of the Central Labor Council representing the Fresno region.

In a deal brokered between the fast food restaurant industry and labor, workers will earn $20 an hour. In return, legislators will ease on pushing a proposal that fast food corporations would be responsible for labor violations by franchisees. The bill will still create a joint labor-management council to discuss working conditions.

The move also eliminates a proposed ballot measure next year sponsored by the fast food industry and franchisees, seeking to overturn a state law establishing a stronger state-run council to regulate wages and working conditions.

If signed by Gov. Gavin Newsom, the $20 an hour provision goes into effect on April 1, 2024. Yearly wages after that could increase by 3.5%. The current state minimum wage is $15.50 for most employees. It increases to $16 next year.

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