Mill Valley, CA: Workers at In-N-Out location behind counter take orders. (Photo: David Tran Photo, Shutterstock)
AB 1228 One Year Later: How The $20 Fast Food Minimum Wage Has Hurt California
Over 22,000 Fast Food jobs have been lost in CA since April 2024
By Evan Symon, April 1, 2025 1:53 pm
Assembly Bill 1228, the extremely controversial law that raised the fast food minimum wage to $20 an hour in California, turned one year old on Tuesday. And the differences between now and a year have been shown to be pretty stark.
According to the U.S. Bureau of Labor Statistics’ Current Employment Statistics (CES), 22,717 fast food jobs have been lost in the past year when seasonally adjusted. The Berkeley Research Group also found that fast food prices in California have gone up by 14.5% since a year ago – about double the national average of 8.2%. And that’s not even getting into the 89% of all restaurants in the state reducing employee hours to offset rising costs, with 87% planning additional cuts over the next year.
That’s where we are a year later.
For those who support AB 1228, they have been hard pressed to find anything positive about it for well over a year. AB 1228, authored by then-Assemblyman Chris Holden (D-Los Angeles), was one of the most contentious bills in 2023. The Holden bill originally tried for a $22 wage for fast food workers, but it was negotiated down, with the $20 amount narrowly passing both houses in the California legislature and being signed by Governor Gavin Newsom.
Before April 1, 2024, thousands of fast food jobs were shed by companies in anticipation for the higher costs, including Pizza Hut who let go 1,200 drivers alone. Lawmakers also knew that there was suddenly going to be a lot of lost jobs, and hastily brought in exemptions for fast food restaurants in airports, stadiums, theme parks and other major public areas.
Nonetheless, job losses quickly mounted after April 1st of last year when the law went online. Not only job losses either – many workers found that they were now working fewer hours or lost a shift as a result. In addition, restaurants automated what they could to avoid the higher wages, including investing in touch screen kiosks over having more traditional cashiers. Some fast food restaurants also closed, as the 25% wage increase from $16 to $20 ruined their thin profit margins.
By June 2024, Stanford University found that over 10,000 fast food jobs were already lost. The Governor’s office swiftly denounced this figure, saying that the number of fast food jobs actually went up. They even went so far as to admonish many media outlets, including the Globe, for reporting the 10,000 job loss figure. While the Governor’s office tried for a few more months to convince Californians that AB 1228 actually brought about fast food job gains, they stopped by the fall when it became apparent that federal data wasn’t on their side. By November, the losses stemming from AB 1228 irked voters so much that they voted soundly against Prop 32, which would have raised the minimum wage statewide to $18.
What AB 1228 has done to California
Losses have only continued in 2025. 16,000 fast food jobs have now been lost in the past year. And when seasonally adjusted, it’s even worse, with 22,717 having been either cut completely or, in the case of delivery drivers and a few other positions, been replaced by third party companies like DoorDash or Uber Eats. Even former supporters like Newsom don’t dare defend AB 1228,. Only unions and a few other workers groups are still defending it, and that comes even after the SEIU and other unions have admitted that AB 1228 has caused job loss in California. The Fast Food Council is also considering a raise next month to $20.70 for workers, something which could make the situation even worse.
Fast food restaurants face one of four options in an uncertain 2025 – raise prices, cut hours of employees, fire employees, or just shut down entirely.
“In the highly competitive world of small business ownership, the deck is already stacked against Latinos—and this 25% wage hike has made it even harder,” said Latino Restaurant Association CEO Lilly Rocha in a statement on Tuesday. “Local restaurants have been forced to make painful decisions—raising prices, cutting hours, and laying off employees—just to survive. This policy unfairly singles out an industry that has long been a pathway to small business ownership for marginalized communities. The Fast Food Council should know that another wage hike would be the final straw that forces many Latino-owned restaurants to shut down.”
“One year after California’s $20 minimum wage for fast food workers took effect, the impacts are undeniable: thousands of jobs lost, higher food prices and growing uncertainty for family-owned local restaurants,” added Molly Weedn of Weedn Public Affairs. “Despite these challenges, the California Fast Food Council is set to discuss a potential wage increase in May. Recently, more than 1,000 local restaurant owners sent a letter to the Fast Food Council and Governor Gavin Newsom, urging them to halt these discussions and consider the real economic harm already inflicted on small businesses, workers and consumers.”
With 87% of fast food restaurants planning to make more cuts this year, those job loss figures are expected to climb even further. And for most owners, the last thing they need is that minimum wage to go up after it skyrocketed just last year.
- Steve Hilton Announces Run For Governor - April 21, 2025
- Former LA Councilman Kevin de Leon Faces Major Ethics Violations Fines - April 21, 2025
- Barbara Lee Wins Oakland Mayoral Special Election - April 20, 2025
RELATED ARTICLES
-
-
February 20, 2024 -
“Fast food restaurants face one of four options in an uncertain 2025 – raise prices, cut hours of employees, fire employees, or just shut down entirely.”
None of the above are a solution, all bad choices for restaurant owners, employees, and even customers. I know I’ve pretty much stopped eating out now due to the insane prices at FF restaurants like Chick-Fil-A ($7.00 Chicken Sandwich? No thanks!). There’s no value proposition anymore eating out, so I make everything at home now. They’ve lost a customer for life at these places, even if it wasn’t all their fault. Gruesome Newsom strikes again!
And to think that chicom greaseball new scum nukum wants to run forpotus in 28.
I agree with you, nuscum needs to go! 💩🤬
lol chic fil a was expensive before and nothing to do with the governor.
I agree with you, nuscum needs to go! 💩🤬 he’s just running California into the ground!!
I am so tired of these politicians trying to make money anyway they can, especially the Democrats. I’m not a Democrat a Republican or a liberal, I’m just a person trying to thrive and live in California at this point. get your goddamn head out of your pocket and do what you’re supposed to be doing when you’re elected for the people, make life better for the people in your state, not yourself exclamation
vote them all out
I agree!!!
There’s only one way to respond to that article Newsome or should I say new scum most corrupt ignorant Democrat there is he ruined California
It’s now cheaper to eat at Chili’s than it is at McDonalds thanks to laws like this.
Truer words never spoken. Why is it that everything the modern Democrat Party touches turns to disaster?
Because democrats are STUPID! 🤬
Because democrats are STUPID! 🤬. And to think people actually keep voting for these idiots! 🤬
Yes it is!!
These low-skill entry level jobs were never intended to be “career” jobs, except for managers. That was the first error.
But a new wave of workers, mainly from outside, plunked themselves into these jobs and expected to raise a family and buy a home on what were designed to be fast turnover, entry level jobs.
You see this happening on all levels today – entry level low skill jobs, which are a great starting experiences in one’s work history, and now sodden lumpish dead ends with demands to be taken care of for life. Failed model .
I mean the service industry account for 80 percent of American jobs at this point with other entry level positions requiring 2 years for employment even for things like administrative assistant (read as secretary), so what are people to do? **
Support trying to bring manufacturing back to the U.S. California used to have multiple auto plants (Ford in Milpitas, GM in both Fremont and Southgate). They used to make airplanes in L.A. (Douglas Corporation). Plus all the suppliers to those plants. Those were good paying jobs that would support a family. Government has chased them all away with high taxes and lots of regulation on top of the higher cost of labor. More and more businesses are leaving the state and taking the tax base with them. It’s going to get real ugly if they can’t turn it around.
Democrats are micromanaging this state into oblivion. Raid the treasury and hire the relatives. That is their sole business model.
The Democrats have no morals and don’t care about the citizens. The only thing they care about is Power and control and money. They lie, cheat and steal to gain more. I wouldn’t trust them to cut my grass!
you have .mistaken Trump for Dem..the only one destroying the country .
Bill you are a MORON!
Wait a day or two after this article and the California main stream media will publish the exact opposite of this fact filled report.
We can complain all we want the California Democratic Cartel (union money) will not reverse the damage done with this minimum wage law.
I know this is a complicated topic but it is aggravating to me that the owners of these fast food locations are not looked at. we know someone who owned four Taco Bells. They are rich off minimum wage when it was so low, owning several homes, fancy cars and vacations. When we say these are just beginning jobs, sure, sounds nice but not everyone is given the same set of circumstances to propel forward. Therefore, judging some workers is not fair. I worked several fast food jobs and there was always the “group” who worked very hard and struggled to make ends meet.
These owners are playing a hand of poker so that others will fold. most franchise owners are doing just fine. I’m all for people making money but at the expense of our weakest and tired, no thank you! That’s just greed. And right now that’s what most people are experiencing, greed in many sectors!!!
What a great article on facts
I was kidding
This globe thing is really not news.
What a scam this 20 dollars was.
What scam this was ,newsome is wrong
I agree wholeheartedly with you. I am a teacher and I have been saying what you said for years. I wish they would pay teachers more. We raise your precious little human beings. I want to see everyone win, but the rich get richer and it’s every man for themselves.🥹
Those greedy owners as you call them are the ones taking all the risk. If they still make a profit under the new minimum wage, they wouldn’t shut their doors. In my town 22% of the fast food locations have closed, and prices from my experience at the remaiming 9 locations are up 25-30% depending on what I order. Just because I choose to continue to eat at those places doesn’t mean others can or will
at a local Taco Bell, I respectfully asked the counter girl why my phone order wasn’t ready 45 minutes after I. ordered (and paid). She said they don’t start preparing until I arrive at the drive through window…she turned her back on me at which time I asked if I could speak to a supervisor. She kept her back to me and said “in one ear and out the other”! My god does Taco Bell not even try to give training to their customer – facing employees?
at a local Taco Bell, I respectfully asked the counter girl why my phone order wasn’t ready 45 minutes after I. ordered (and paid). She said they don’t start preparing until I arrive at the drive through window…she turned her back on me at which time I asked if I could speak to a supervisor. She kept her back to me and said “in one ear and out the other”! My god does Taco Bell not even try to give training to their customer – facing employees? by
The modern labor market ensures these types of jobs end up being non transitory work. Therefore staying longer . No evidence or annotations to data to have and opinion.? Do better
.
What great article on facts
I was kidding
we know someone who owned four Taco Bells.
4 Taco Bells? The horror!
They are rich off minimum wage when it was so low, owning several homes, fancy cars and vacations.
how dare an entrepreneur risk huge sums and then get rewarded for their efforts!
not everyone is given the same set of circumstances to propel forward.
a common battle cry of the unskilled and lazy. on the contrary, EVERYONE is born with the same natural rights to life, liberty, and the PURSUIT of happiness. there is no guarantee of high paying jobs. if they TRULY had desirable skills, they would be payed more.
. Therefore, judging some workers is not fair. I worked several fast food jobs and there was always the “group” who worked very hard and struggled to make ends meet.
the only people who struggle are those who consume too much, save too little, and don’t apply themselves. my dog can flip burgers and drop fries in the dryer.
Andrea. Go learn a trade. become a plumber and fix some toilets or something. being a zero skill fast food slinger will never support a family.
What an inane, sophomoric reply. Bless your heart for being so gullible to believe that’s the way the things work for everyone.
I have to see your dog that’s amazing
these fast food works don’t even deserve anything over 10 a hour. they can’t get a order correct. and the are rude as hell.
What actually happened is that the minimum wage has been eliminated.
lies and lies so what the solution is to survive a job with 15 an hour in cali? you know how much rent is there you think they care what job you have no they dont if that’s the obly job you can get what else are you supposed to do the game is rigged what a joke the people commenting here are dumb people who cant even notice the billionaire and restaurant are just holding money i dont see no one complaining om how much money they are getting as ceos and otherwise no wonder the people voted for trump they have dumb articlws paid by rich people and dumb people eating it up because they are too dumb or ignorant or both.
The Pizza Hut au pairs who were laid off are completely due to the existence of applications called Uner Eats and Doordash. When you compare the increased wages to the profits of fast food chains, you will see that the companies are making much, much more profit than the extra money they are paying and the taxes they are paying remain the same.
They should measure the number of jobs lost starting months before the law goes into effect. Many fast food establishments, including mine, began cutting and adjusting hours two to three months before April 2024.
And what about bad Democrat state policies. Theres no blame for them?
First of all, łet us all focus on the real numbers and existing Corporate fast food industry necessity to increase profit margins year after year.
A reply above made a very good point about our economy. Our economy is no longer a manufacturing but is a Service oriented one. Generally, ,Food Service Industry workers of the past were considered low paying jobs and especially in FF.sector. However, these jobs are much more difficult now with the online ordering apps
(1) These Corporations would have eliminated these FF worker positionsregardless of the Mknimum wage increase from this bill..
(2) Most of feel that the numbers above are true and. blame Democrats and Governor Newsom for making a bad decision (blah, blah, blah). This article left out a very important number and faile to compar all the job losses from Covid.
Statistically, only .0004727 percent of jobs based on an economy of full employment (imposible).were lost based on the nominal population of Californis, which makes this article is irrelavent!
all gov newsome needs to do is prioritize lowering the price of pgne. so simple. that would help everyone in the state it works free up money and help the economy. for some to reason he doesn’t care and so pgne, gas, everything only goes up never down. who every voted for him please understand this is what Democrats do. they let their states become unlivable maybe because his home is worth 10 million and he’s out of touch. be careful who you vote for be careful when recalls come through jump on them. gov newsome isn’t driving the car called California he isn’t paying attention to the road and we’re all about to crash. very simple supply and demand very s simple economics. I don’t know why new York and California are like this
sad….
I loved the part about the latino small business ownership. the law only applies to fast food businesses with 60 or more locations nationally. When he talks about them having to raise prices and cut hours, he’s referring to employee retention due to increased competition. i love in the greater los angeles area and even though this is anecdotal, literally every major food chain is hiring. Once again, this law doesn’t force small businesses to increase wages, it’s designed to increase wages through competition by having the giant corporate chains increase wages. If your restaurant was only profitable cause of low employee wages then you shouldn’t be running a restaurant. Not to mention the glaring issues with why prices across the board have increased. This dude is attacking one of the few good pieces of legislation that actually put some power back into normal peoples hands while ignoring the very real economic policies that resulted in the price hikes and layoffs in the first place. it wasn’t ab1228, restaurant owners just like to complain about it cause it takes cheap labor away from them.
Yes it is!!
Isnt it difficult to attribute this bill as the reason for the layoffs if the fast food layoffs were only 1% higher than other limited dining job layoffs. Meaning wouldnt other limited dining options have significantly less layoffs since they dont have this impact?
holden pushed the bill…realized he screwed up and pushed ab610 to help out his buddies (donators) and gavies buddy at panera…they sat there and falsified reports and pushed the narrative say no jobs where lost…let the dust settle and now a year later the truth comes out…typical government always knowing what’s best for us and REPEATEDLY BEING WRONG