McDonald's, Chipotle Paying Millions To Block Minimum Wage Hikes

Chipotle, Starbucks, Chick-fil-A, McDonald's, In-N-Out Burger and KFC-owner Yum! Brands have donated millions of dollars to help oppose a law in California that will lift minimum wages in the state up to $22 an hour for fast food employees, Nathaniel Meyersohn reported for CNN Business.

Photo Insert: McDonald's US President Joe Erlinger blasted the law as one driven by struggling unions that would lead to "an unelected council of political insiders, not local business owners and their teams," making key business decisions.

The minimum wage for non-fast food workers would remain at $15.50. Advocates of the law see it as a breakthrough in improving pay and conditions for fast-food workers.

Opponents say it's a radical measure that would have damaging effects. They argue it unfairly targets the fast-food industry and will increase prices and force businesses to lay off workers.

On Wednesday, McDonald's US President Joe Erlinger blasted the law as one driven by struggling unions that would lead to "an unelected council of political insiders, not local business owners and their teams," making key business decisions.

Proponents and critics of the closely watched initiative both say that it could transform the fast-food industry in California and serve as a bellwether for similar policies in other parts of the country, Nicole Goodkind also reported for CNN Business.

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