When it goes into effect on April 1st, California fast food workers will have the highest guaranteed basic income in the nation.
The state's minimum pay of $15.50 per hour for nontipped workers is already above the national average.
On Thursday, Democratic Governor Gavin Newsom signed the measure in Los Angeles in front of a crowd of jubilant employees and labor leaders.
Newsom disagreed with the common perception that fast food employment are good entry-level opportunities for young people.
According to Newsom, "that's a romanticized version of a world that doesn't exist."
In the most populous state in the country, labor unions have been pushing to organize fast food employees in an effort to better their wages and working conditions.
It also ends a dispute between business and labor on how to govern the sector for the time being.
At the same time, businesses have agreed to remove a wage-related referendum from the 2024 ballot.