New study claims ‘significant' job losses since California's fast-food minimum wage increase
New research published by Pepperdine University is attempting to settle the debate over whether boosting the minimum wage for fast-food workers in California to $20 an hour has cost jobs.
The study, released on April 1 to coincide with the one-year anniversary of AB 1228, says the sector has seen a 'significant' decline of over 23,100 jobs. At the same time, fast-food employment grew by 0.8% nationwide, researchers said.
'This new data should be a wake-up call for policymakers,' said Christopher Thornberg, founding partner at Beacon Economics, a private research group that partnered with Pepperdine's School of Public Policy. 'The employment losses in California's fast-food industry are now evident, and they confirm what many had warned about: Drastic wage hikes create real economic consequences, especially for entry-level workers.'
The study's authors argue that raising the minimum wage could negatively impact more than just employment; it could also affect business sustainability, employee work hours and benefits. They recommend the state's Fast Food Council pause any new regulations, including another proposed wage increase, until 'unbiased, comprehensive research is conducted.'
'Please, sir, I want some more,' says California fast food workers' union
Since its inception, the impact of AB 1228, which increased the minimum wage for workers at large fast-food chains by $4 per hour, or 25%, has been a hotly debated topic.
Industry groups have consistently sparred with Gov. Gavin Newsom's office over how to interpret the jobs data. Both sides accuse the other of having inherent biases, and some previous studies showing significant fast-food job losses in California have, indeed, been retracted.
Citing the Bureau of Labor Statistics, the governor's office told KTLA on Monday that average weekly wages in California's fast-food sector have increased by 12.9% year over year.
Tom Manzo, founder of the California Business and Industrial Alliance and a fierce critic of AB 1228, isn't convinced.
'(The Pepperdine University) report is just the latest confirmation that Governor Newsom's misguided fast-food minimum wage law is killing jobs across California,' Manzo said. 'When will enough be enough? Instead of spending time launching a new podcast, our Governor should be focused on fixing his mistake for the sake of small business owners and their employees.'
Two outcomes of AB 1228, however, are less ambiguous.
First, increasing the minimum wage to $20 per hour has helped hundreds of thousands of fast-food workers in the Golden State make ends meet. Franchise owners say it has also helped with recruiting and retention.
The other outcome is that customers are paying more for their burgers, chicken strips, French fries and tacos than before. Many fast-food chains began raising prices when AB 1228 was signed into law and continued to do so after it took effect.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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New York Times
34 minutes ago
- New York Times
Live Updates: Tensions Flare Between Protesters and Law Enforcement in L.A.
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Yahoo
35 minutes ago
- Yahoo
Explainer-Does U.S. law allow Trump to send troops to quell protests?
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Yahoo
35 minutes ago
- Yahoo
Live updates: National Guard arrives in Los Angeles to quell ICE protests
The Brief Tensions are high in Los Angeles after a series of federal immigration sweeps have sparked heated protests across the city and county for three days. Roughly 300 National Guard troops arrived in Los Angeles Sunday under orders from President Trump, despite objections from California Gov. Gavin Newsom. Protesters threw bottles and rocks at officers, then moved onto the freeways near downtown and blocked traffic after they were ordered to disperse. National Guard troops clashed with protesters in Los Angeles Sunday, firing tear gas at crowds downtown as protests against federal immigration sweeps continued for a third day. Roughly 300 troops were sent to Los Angeles Sunday by President Donald Trump after confrontations between federal immigration officers and protesters who tried to stop them from carrying out deportations. Here's the latest: 4:05 p.m. PT: The protests have spread to the freeways in and around downtown Los Angeles. Protesters are blocking traffic. 3:40 p.m. PT: Gov. Gavin Newsom has sent a formal request to the Trump administration to rescind "their unlawful deployment" of troops in Los Angeles County and "return them to my command." "We didn't have a problem until Trump got involved," Newsom said in a post on X. "This is a serious breach of state sovereignty – inflaming tensions while pulling resources from where they're actually needed." 3:30 p.m. PT: LAPD says arrests are being made after officers reported protesters throwing concrete, bottles and other objects. A dispersal order has been issued in the area. 2:55 p.m. PT: The Los Angeles Police Department declared an unlawful assembly around 2:45 p.m. PT Sunday and ordered protesters to leave the area. People who don't leave could be arrested, LAPD said. LAPD also authorized the use of "less lethal munitions" to control the crowds. "Persons throwing items at officers will be detained and arrested," LAPD said. 2 p.m. PT: Speaking to reporters Sunday, Trump did not rule out invoking the Insurrection Act, an 1807 law that allows presidents to call on reserve or active-duty military units to respond to unrest in the states. "We're not going to let them get away with it," Trump said Sunday. "We're going to have troops everywhere, we're not going to let this happen to our country. We're not going to let our country be torn apart." Trump deployed the National Guard despite objections from California Gov. Gavin Newsom, who accused Trump of a "complete overreaction." It marked the first time in decades that a state's national guard was activated without a request from its governor, according to the Brennan Center for Justice. What we know Trump invoked a legal provision Saturday allowing him to deploy federal service members when there is "a rebellion or danger of a rebellion against the authority of the Government of the United States." He said he had authorized the deployment of 2,000 members of the National Guard. Military officials said roughly 300 troops were deployed Sunday, with some of them stationed outside the Metropolitan Detention Center in downtown Los Angeles. It's one of several locations where demonstrators have clashed with law enforcement over the past two days. READ MORE: Missouri 'soccer mom' facing deportation is released from custody The guards are dressed in tactical gear and carrying long guns. What we don't know There was some confusion surrounding the exact timing of the guard's arrival. Agents in riot gear arrived in downtown Los Angeles around 8:30 p.m. Saturday, firing smoke bombs and rubber bullets into the crowds. It's still unclear whether they were National Guard troops, federal law enforcement or local police. Shortly before midnight local time, Trump congratulated the National Guard on a "job well done." But less than an hour later, Los Angeles Mayor Karen Bass said troops had yet to arrive in the city. The other side Newsom, a Democrat, described Trump's decision to call in the National Guard as a "provocative show of force" that would only escalate tensions, also calling Defense Secretary Pete Hegseth's threat to deploy Marines on American soil "deranged behavior." Newsom and Trump spoke on the phone for about 40 minutes Friday night, the governor's office said. The last time the National Guard was activated without a governor's permission was in 1965, when President Lyndon B. Johnson sent troops to protect a civil rights march in Alabama, according to the Brennan Center for Justice. What's next According to Fox News Digital, the National Guard is expected to be deployed in Los Angeles for up to 60 days in response to the protests. The backstory The National Guard's arrival comes after two days of relatively small but heated protests that began Friday in downtown Los Angeles before spreading on Saturday to Paramount, a heavily Latino city south of the city, and neighboring Compton. READ MORE: Court rules migrants sent to El Salvador prison must get due process Tensions were high after a series of sweeps by immigration authorities the previous day, as the weeklong tally of immigrant arrests in the city climbed past 100. A prominent union leader was arrested while protesting and accused of impeding law enforcement. When federal agents set up a staging area Saturday near a Home Depot in Paramount, demonstrators tried to block Border Patrol vehicles, some of them by hurling rocks and chunks of cement. A car was also set on fire. In response, federal agents in riot gear used tear gas, flash-bang explosives and pepper balls. Dozens of protesters were arrested. Immigration sweeps and protests also happened on the East Coast in New York City, where several protesters were arrested. The Source This report includes information from The Associated Press, FOX Los Angeles and President Trump's Truth Social account.
