California has lost thousands of fast food workers since a hefty minimum wage hike went into effect in early 2024, according to a recent analysis from the Employment Policies Institute (EPI), a conservative think tank.
The Golden State is estimated to have lost almost 14,000 fast food jobs since it implemented a minimum wage increase for fast food workers in April 2024, according to an analysis of Bureau of Labor Statistics (BLS) data published Wednesday by the EPI. In September 2023, Democratic California Governor Gavin Newsom signed a law raising the minimum wage for California’s fast food workers from $16 per hour to $20 per hour, which went into effect in April 2024.
“The minimum wage hike took effect just 11 months ago, and though we’re still in the early days the predictable pattern is already emerging pretty clearly: Facing a 25% hike in their labor costs, employers cut labor,” Will Swaim, president of the California Policy Center, told the Daily Caller News Foundation. “They’ve laid off workers and replaced them with ATM-like kiosks to replace counter service, and even automating their kitchens and closing dining rooms or reducing their store hours. At the same time, owners are raising menu prices — and of course that falls most heavily on lower-income people, and that leads to less store traffic — and that kickstarts another round of layoffs.”
Compared to September 2023, there were 16,000 fewer fast food employees in September 2024 — six months after the minimum wage policy went into effect, according to BLS data cited by EPI.
After California’s fast food minimum wages increased, some fast food restaurants in the state reported experiencing less customer traffic as well as having to raise their menu prices, according to Fox News. Still, Newsom’s office has repeatedly lauded the fast food wage increases as having positive impacts on California’s workers and denied claims that the law has reduced the state’s fast food workforce.
https://dailycaller.com/2025/03/07/gavin-newsom-california-fast-food-workers/