California’s businesses are hemorrhaging, and the governor is more interested in making himself look good than stopping the bleeding. A first of its kind survey shows most California fast food businesses have been forced to slash employee hours, shut down, or even consider moving out of state.

Since Governor Gavin Newsom signed a $20 fast food minimum wage law last fall, businesses and their employees have been scrambling to adapt. Headlines starting in January before the law even went into effect announced popular chains and small franchise owners were having to lay off staff and change their menu pricing to brace for the new law going into effect April 1.

Governor Newsom ignores the concerns of small franchisees and their employees, while cherry picking specific months of data to tell Californians and the nation that the $20 minimum wage is a success. It was only a matter of time before the truth would be too loud to ignore.

That time has come. A new Employment Policies Institute survey of nearly 200 California fast food restaurant operators shows most (89%) have been forced already to reduce scheduled hours for their employees, or lay off staff completely. For those that remain employed, three-fourths of operators said they have had to limit overtime or opportunities to pick up extra shifts for employees that want them.

If that wasn’t enough evidence, new California jobs data shows over 6,000 jobs have been slashed in California’s fast food industry since January, while the state’s total employment level is growing. Compared to years prior, the Golden State’s fast food industry employment growth is at its lowest rate since the Great Recession, barring COVID-era losses due to government shutdowns.

The negative impacts of the law are hitting consumers too, many of whom are the employees being affected by layoffs and shift reductions. Almost all restaurant operators said they were already forced to raise their menu prices to try to survive the April 1 hike. Yet 92 percent also indicated they know this could curb the number of patrons dining in their restaurants.

Recent reporting by Business Insider finds this is already happening: customer foot traffic in California’s fast food restaurants is down.

Responses indicate that these consequences are bound to continue under this higher fast food wage mandate.

While the hurt keeps coming, restaurants don’t see a reprieve coming any time soon. A majority anticipate the law will cost them at least $100,000 or more every year, triggering future measures to reduce costs.

Yet instead of acknowledging how disastrous this law has been in just a few months, the Newsom administration is doubling down, going after journalists who warn about business concerns and federal data showing serious negative impacts. What’s more, the unions responsible for the law are already clamoring for another industry wage increase this coming January.

That’s why restaurants are starting to look elsewhere to set up shop. Most said they would not expand in California going forward, and a majority want to leave the state entirely.

Gov. Gavin Newsom has been vocal in promoting these policies as beneficial for all Californians, but business owners on the ground are sounding the alarm about the harmful consequences already playing out. Governor Newsom doesn’t want to face the hard truth: nobody wins when businesses move out of state and employees have fewer shift opportunities.

As California convenes its fast food industry council next week, council representatives must acknowledge the crisis this law is creating. If the federal data and national headlines aren’t enough, Newsom and state lawmakers must listen to small businesses and their employees who say the current policy is hurting California.