Posted on 07/22/2025 11:19:24 AM PDT by Red Badger
California’s new $20-per-hour minimum wage for fast food workers has resulted in a significant decline in employment in that sector, leading to 18,000 fewer jobs than would have been the case otherwise.
That’s according to a new paper released by the National Bureau of Economic Research (NBER) this month, which said:
We analyze the effect of California’s $20 fast food minimum wage, which was enacted in September 2023 and went into effect in April 2024, on employment in the fast food sector. In unadjusted data from the Quarterly Census of Employment and Wages, we find that employment in California’s fast food sector declined by 2.7 percent relative to employment in the fast food sector elsewhere in the United States from September 2023 through September 2024. Adjusting for pre-AB 1228 trends increases this differential decline to 3.2 percent, while netting out the equivalent employment changes in non-minimum-wage-intensive industries further increases the decline. Our median estimate translates into a loss of 18,000 jobs in California’s fast food sector relative to the counterfactual.
HR Grapevine added:
The Employment Policies Institute estimated that “non-tipped restaurant workers [lost] 250 hours of work annually,” translating into up to $4,000 in lost income. That drop equates to seven weeks of work each year per employee.
The California Globe reported that “thousands of fast food jobs were shed by companies in anticipation for the higher costs,” including 1,200 drivers at Pizza Hut. Once the law took effect on April 1, 2024, “restaurants automated what they could to avoid the higher wages,” and “some fast food restaurants also closed.”
By June 2024, Stanford University data indicated “over 10,000 fast food jobs were already lost.” While the Governor’s office disputed the figure, saying fast food jobs had increased ...
(Excerpt) Read more at breitbart.com ...
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Stevie Wonder could have....
You don’t have a job if the government drives your employer out of business.
Completely predictable.
but order kiosks are fully employed
Without attending the hearings, I know there were people who spoke about the consequences and through the premeditated ignorance of those on the committee passed the bill to action by the legislature and governor.
Which is why McDonald’s has been installing touchscreen kiosks for ordering.
So has Taco Bell...................
Today’s elected political trash are two incompetent to regulate wages.
True min wage is $0.00
Look on the bright side - robot unemployment is down.
In a way, that's a bonus. They won't screw up my order. I see them around here and we don't have a $20 minimum wage.
Democraps at work...
Didn’t LA just pass a 30 dollar min wage?
See the hotels close......
Robots, kiosks...I would guess since they're dumping all that high wage labor their prices will go way down!
But their prices are still sky high for fast food...Hmmm.
Deep State is delighted to see that.
California’s $20-per-hour minimum wage.
For putting a bag of fry’s into a bigger bag of fry’s they must be grads of MIT. /s
MAYOR “BASS ACKWARDS” GOT AN AGREEMENT WITH HOTELS & OTHER SUPPLIERS TO GIVE SPECIAL RATES DURING THE OLYMPICS-—IN 2028.
THEN SHE DOUBLE CROSSED THOSE BUSINESSES & RAISED MINIMUM WAGES FOR HOSPITALITY & TRANSPORT WORKERS TO A HIGH RATE>
NOW-—BUSINESSES ARE CAUGHT IN A BIND.
THEY WILL LOSE $$$.
Democrats NEVER, EVER take into consideration human nature.
You make business pay a $20 minimum wage and those businesses will find a way to keep the profit margin up...................
18,000 found out that the TRUE minimum wage is zero ...
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