The California legislature just passed a new bill to require all major fast-food chains throughout the state to pay their employees at least $20 per hour – and McDonald's, the world's largest fast-food chain with 40,100 stores worldwide, is really angry about it.
The passage of Assembly Bill 1228, which is now on its way to Gov. Gavin Newsom's desk, "will result in a devastating financial blow to California McDonald's franchises at a projected annual cost of $250,000 per McDonald's restaurant," responded the National Owners Association to the bill's passage.
According to the legislators behind AB 1228, the bill only affects the "rich" fast-food places that have more than 60 locations nationwide. This is technically true, though it will likely inadvertently affect small fast-food chains or individual family-owned restaurants because employees will choose to apply and work at McDonald's for $20 an hour versus making far less at theirs.