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California’s new fast food minimum wage law poses headaches for school districts

April 4, 2024
in Business
Reading Time: 3 mins read
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California’s new fast food minimum wage law poses headaches for school districts
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California’s new $20-an-hour minimum wage for fast food workers won’t just impact consumers who have to pay higher prices for menu items, but it could also make it more difficult for some public schools to retain low-paid cafeteria staffers.

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Cash-strapped school districts in the Golden State could be forced to compete with billion-dollar corporations such as McDonald’s, Wendy’s and Pizza Hut parent company Yum! Brands for food service workers who are badly needed in California.

The state – which became the first in the country to guarantee free meals for all students regardless of income – will distribute 70 million more meals this year compared to 2018, according to education officials in Sacramento.

Cafeteria workers prepare pizza for students at Firebaugh High School in Lynwood, Calif. on Wednesday. AP

School cafeteria jobs typically suffer from high turnover and other staffing challenges – a problem that could be further exacerbated by the new minimum wage law.

“They are all very worried about it. Most are saying they anticipate it will be harder and harder to hire employees,” Carrie Bogdanovich, president of the California School Nutrition Association, told the Associated Press.

In the Fresno school district, cafeteria workers make as little as $15 an hour, according to recruiting site Glassdoor.

Some districts preemptively offered their cafeteria workers pay raises in anticipation of the law.

School districts are concerned they won’t be able to compete with companies for service workers. AP

Sacramento Unified School District agreed to a 10% wage increase for its food service workers last year.

It has also pledged another 6% increase that will go into effect in July – bumping wages to around $20 per hour.

The pay raise for school district workers was the largest in nearly three decades.

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“We are looking not only at competing with district and comparing with districts, we’re also looking at fast food places,” Cancy McArn, the Sacramento Unified School District’s chief human resources officer, told AP.

San Luis Coastal Unified doubled the number of food service staffers to 40 after it saw a 52% increase in the number of students eating school meals.

California now requires fast food restaurants to pay their employees at least $20 an hour. Getty Images

The district prepares 8,500 meals daily for 7,600 students across 15 school sites — breakfast, lunch and even supper options for youth in after-school sports and activities.

The district has since limited the number of its entry-level positions, which are the hardest to fill, while seeking to hire more for complex roles like “culinary lead” and “central kitchen supervisor” that require more skills and hours — making them more attractive to job seekers.

“That’s allowed us to be more competitive,” said Erin Primer, director of food and nutrition services for the San Luis Coastal Unified School District.

But some districts are limited in what they can do.

Some school districts in California have given their food service workers pay raises in anticipation of the new law. AP

In the Lynwood Unified School District in Los Angeles County, the starting salary for food service workers is $17.70 per hour and maxes out at $21.51 per hour, according to Gretchen Janson, the district’s assistant superintendent of business services.

She said these workers only work three hours per day, meaning they aren’t eligible for health benefits.

Janson says the district is waiting to see how employees react, adding: “We just don’t have the increase in revenue to be able to provide additional funding for staff.”

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