Arlington, VA – Today, new analysis from the Employment Policies Institute of quarterly data from the Bureau of Labor Statistics revealed that California has lost as many as 16,000 jobs since the state’s $20 fast food minimum wage law was signed in September 2023. (The state is down nearly 14,000 jobs since the law officially took effect in April 2024.) The data includes mandatory reporting from all fast food establishments and covers the first six months since the implementation of the law. See the monthly changes here:
AB 1228 was signed into law in September of 2023. After the signing, businesses began preparing for the skyrocketing labor costs by laying off staff, reducing hours, and raising menu prices.
“The propaganda coming out of Newsom’s office and the SEIU is completely out of touch with reality,” said Rebekah Paxton, research director at the Employment Policies Institute. “The data definitively shows thousands of jobs have been lost due to this harmful policy, and hardworking Californians are left feeling the burden. The Fast Food Council should immediately halt discussions on increasing the fast food minimum wage further.”
Background:
- A study by the Berkeley Research Group found that menu prices have increased 14.5% due to the $20 wage hike;
- After the implementation of the $20 minimum wage law, an EPI survey found that a majority of restaurants say they had raised menu prices (98%), reduced employee hours (89%), limited employee shift pick-up or overtime opportunities (73%) and reduced staff or consolidated positions (70%) as a result of the minimum wage law;
- Additionally, a majority of restaurants surveyed said in 2025 they will have to raise menu prices (93%), reduce employee hours (87%), reduce staff or consolidate positions (74%), and limit employee shift pick-up or overtime opportunities (71%).