Mill Valley, CA: Workers at In-N-Out location behind counter take orders. (Photo: David Tran Photo, Shutterstock)
Shocking 16,000 Jobs Lost Due to California’s $20 Fast Food Wage Hike
The data comes from the new Bureau of Labor Statistics Quarterly Census of Employment and Wages
By Katy Grimes, March 8, 2025 9:19 am
By the time California Governor Gavin Newsom signed into law the $20 minimum wage for fast food workers, he had been warned by many that it would be devastating for the industry, but he did it anyway. Now, 16,000 fast food jobs have been lost and fast food prices are up more than 14.5%. And here is why: the $20 minimum wage harms California’s least skilled and least experienced workers, as they are no more productive, but are significantly more expensive, and results in harms the business owners as well.
This week, new data released from the new Bureau of Labor Statistics Quarterly Census of Employment and Wages (QCEW) shows that California has now lost as many as 16,000 fast food jobs.
The Bureau of Labor Statistics Quarterly Census of Employment and Wages includes mandatory reports from industry employers. The Employment Policies Institute reminds us that “this dataset is the gold standard for economists, and has been lauded by even Newsom’s favorite economists as the best on-the-ground look at a sector’s economic situation.”
A 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:
The Globe reported on the last study in February by the Berkeley Research Group, which proved that California’s $20 minimum wage for fast food workers has led to job losses, higher food prices, and increased automation in the industry.
The BRG study found, “California’s fast-food restaurants lost 10,700 jobs between June 2023 and June 2024, making it the worst performing year outside of a recession, and the COVID-19 pandemic. Additionally, food prices at local restaurants have increased by 14.5% since the legislation was signed, nearly double the national average.
Now we find that with the employer’s jobs report that California’s fast-food restaurants lost 16,000+ jobs.
AB 1228 was signed into law in October 2023 by Governor Gavin Newsom, creating the new $20 minimum wage for fast food employees – a massive 25% increase from the $16 minimum wage.
The increase to $20 minimum wage for fast food workers went into effect in April of 2024.
“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.”
EPI offers additional Background:
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A study by the Berkeley Research Group found that menu prices have increased 14.5% due to the $20 wage hike;
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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;
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Additionally, a majority of restaurants surveyed said in 2025 they will have to continue 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%).
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Gee, I wonder if Newsom will face the job-loss facts and other ugly details from this stupid legislation, or will he continue to say, “take THAT, Wall Street Journal!” (or whatever he said on the Dem podcast last year at the DNC) while in a heightened state of denial and fantasy. Recall he said that many many ADDITIONAL jobs had been created. Oh sure!
You just know that it will be the ever-increasing prices that make the difference for the customer and add to the failure of this state-imposed $20 minimum wage. Well, until more restaurants are forced to close, that is. Even those who can afford it are simply not going to be willing to pay for fast food what they not-very-long-ago paid for a filet mignon at a sit-down restaurant. And so far, no one can MAKE them pay that for a cheeseburger. At least not yet!
The French Laundry crowd hates the little people who cannot afford overpriced gourmet food. Give me a Double Double with extra toast over Ballotine De Poularde Aux Homard for a mere $310 any day.
Ha ha! Yeah, fix one of those (off the Secret Menu) for me, too.
And your governor wants to become our next POTUS? LMAO
The guy never worked in the private sector. So, he had no clue what the $20/hr minimum wage bill that he signed into law would lead to.
Well, that’s not entirely true – he sorta worked in the private sector. He co-owned a wine shop in partnership with the Getty family. They made all their money in the private sector.
For whatever reason, the hard left disapproves of and wants to destroy the fast food industry. They can’t do it with a direct legislative assault outlawing fast food, so they do an end run by escalating the cost of doing business to where there is no profit in the industry and the involved corporations are killed off. I believe it’s that simple, and regardless of hollow lip service the left doesn’t care the slightest about workers when it comes to narrative and agenda.
I would bet that if you follow the money Gav has investments in automated burger flippers and any other automation required to get the job done. I sure do hope that’s being investigated.
Has Newsom’s Deputy Director for Rapid Response, Brandon Richards (he/him | 🏳️🌈 bi+), tried to refute the data from the Bureau of Labor Statistics yet or try to blame any job losses on climate change or some other nonsense?
It’s become ever more obvious that Gov. Hair-gel Hitler Newsom’s push for a $20 minimum wage for fast food workers has led to job losses, higher food prices, and increased automation in the industry?
(https://x.com/BrandonRichards)
What’s not talked about is the lost opportunity for young people in high school to get fast food jobs, and gain experience in the working world. He has denied thousands of teens, many of them in the inner city, the pride of earning their first paycheck. Newsom wasn’t the only jack*ss to support this. All of the yes votes on AB 1228 were from Democrats. Check it out for yourself by clicking on the votes link. https://calmatters.digitaldemocracy.org/bills/ca_202320240ab1228