SACRAMENTO, California: Fast food workers will now receive $20 per hour in California, after the governor signed a fast food wage bill into law.

"The future happens here first," Governor Gavin Newsom said after the signing.

The new law was part of a compromise reached in which the fast-food industry would withdraw a petition for a referendum on wages, in exchange for labor unions ending their demands for fast-food corporations to be held liable for violations committed by their franchisees.

California fast-food workers earned over $16.60 per hour in 2022. Nationally, fast food workers earned $13.43 per hour.

California is home to 30,000 fast food locations employing more than 550,000 workers.

"We're not just about growth," Newsom said. "This state is about inclusion."

The law also establishes a Fast Food Council, to be made up of representatives for workers and employers who will be empowered to approve future pay increases and set standards for working conditions.

The mandated minimum wage throughout California is $15.50 an hour, among the highest of any state. The federal minimum wage remains at $7.25 per hour, or $15,080 a year, for an employee working 40 hours a week.