With 16,000 Lost Fast Food Jobs, New Ad Blasts California’s ‘Crappiest Law’
EPI’s Full-Page Ad Slams First Birthday of $20 per hour fast food minimum wage law
By Katy Grimes, March 31, 2025 4:27 pm
“The minimum wage law very cleverly is misnamed,” Economist Thomas Sowell said. “The real minimum wage is zero. That is what many inexperienced and low skilled people receive as a result of legislation that makes it illegal to pay them what they are currently worth to an employer.”
Proof of this is California’s recent $20 per hour fast food minimum wage. Since the passage of AB 1228 to increase the minimum wage for fast food workers to $20 per hour, 16,000 fast food jobs have been lost, and fast food prices are up more than 14.5%.
AB 1228 was signed into law by Governor Gavin Newsom September 28, 2023, creating the new $20 minimum wage for fast food employees – a massive 25% increase from the $16 minimum wage.
High minimum wages harm California’s least skilled and least experienced workers the most, as they are no more productive, but are significantly more expensive, resulting in harms to the business owners as well.
The Employment Policies Institute has been reporting on this boneheaded move by California’s Democrat supermajority Legislature and Democrat Governor Gavin Newsom. And now we have a lovely graphic to go with the bad news.
This is what the Employment Policies Institute says about this:
Tomorrow, on the first “birthday” of the implementation of California’s $20 fast food minimum wage law, the Employment Policies Institute (EPI) will run a full-page ad in the California statewide edition of USA Today showcasing the detrimental impacts the wage hikes have had on the state.
The ad highlights the 16,000 fast food jobs that have been “flushed away” due to the minimum wage law, and the fact that the law has resulted in skyrocketing menu prices as well as numerous business closures. To put it plainly, the law “…stinks for workers. It stinks for business owners. It stinks for consumers.”
“The evidence of the destruction by California’s $20 wage law is undeniable,” said Rebekah Paxton, research director at the Employment Policies Institute. “The law has forced restaurants to raise their prices, causing customers to eat out less, therefore triggering restaurants to slash thousands of jobs or close up shop. It’s time for Newsom and the SEIU to cut the crap.”
See the full page ad here.
I will say this again — no one has explained to me how it is constitutionally legal to have separate minimum wages for different jobs. How and why has this not been challenged. I have no argument that minimum wage is just too low, but it is not intended to be a “livable wage”. Fine. California can have its own minimum wage, but it must be applied to all, not just some.
Good point,. Paul. How is that Constitutional? What’s next from the Democrats, a different minimum wage based on your skin color? I wouldn’t be surprised.
Sure, it’s a crude ad, but they nailed it, don’t you think?
This vote-buying, job killing “minimum wage law” IS a mess. It’s rife with unintended (or were they intended?) consequences. Lost jobs, lost hours, high prices that fast food customers really hate paying for fast food so they don’t, or at least not nearly as much. Down and down and around and around it goes. Minimum wage IS crap law and crap policy. This law needs to be repealed so we don’t see a death spiral. But it won’t. Good job, Dem/Marxist legislators, ridiculous unions, politicians who try to buy votes from voters and of course our Gov who signed it all. Nice work, thanks a lot! Happy now? You probably are. Jerks.
No doubt Newsom’s Deputy Director for Rapid Response, Brandon Richards (he/him |
bi+), will try to refute the ad and maybe 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)
Ha ha
Yes, Brandon Richards (he/him etc) would probably do that and say that.
What a nuthouse California has become.
Wait a few days and there will be a news release from ca.gov to main stream that the minimum wage if working fine. This to refute FACTS presented over and over again by this publication.
Sorry Paul but those downtown are known to say “constitution? we don’t need no stinking constitution”!
And may I add, the only time Bonta and Gav point to the constitution is when it suits their agenda.
“increase in wages must also have increase in production” No way is there an increase in production for fast food companies unless it come from automation; which elimination of jobs.