New study reveals blue state's fast-food minimum wage hike jeopardized thousands of jobs
Fast-food job losses in California spiked after passage of the $20 minimum wage for some workers, according to a new study.
A Berkeley Research Group study discovered not only were there 10,700 jobs lost between June 2023 and June 2024 in the sector, according to Bureau of Labor Statistics data. But prices at the establishments soared by 14.5% after the new minimum wage became law.
"California fast food restaurants also increased automation and technology adoption to offset rising labor costs," the study released Feb. 18 stated.
"Therefore, it should not be surprising that the number of employees per restaurant is declining.
"Californians are bearing the cost of the minimum wage increase through fewer available jobs and higher food cost," it added. The study also debunked notions that the minimum-wage legislation created jobs, according to the California Globe.
The study noted that the authors were "retained" by Save Local Restaurants but said the research was conducted independently.
Chef Andrew Gruel, a California-based restaurateur, told Fox News Digital he saw early on that there could be negative consequences for the service industry.
"I railed about this months ago," he said, adding that while the early economic effects were being touted, he suggested there would be losses.
Gruel also offered advice to businesses struggling to keep up with the minimum wage requirement.
"Cut your menu size, outsource a lot of kitchen labor and utilize AI for back office management," Gruel said.
The minimum wage for workers was $16 before the $20 minimum wage for fast-food workers became law in April 2024. Gov. Gavin Newsom said in September 2023 the increase would help workers earn more as the cost-of-living rises.
"Fast food workers in CA will now be paid the highest minimum wage of any state in the country. I just signed a bill that will ensure these workers receive the fair pay they deserve," he tweeted at the time.
However, the report also cautioned that it may also result in people getting paid less overall and "accelerate automation."
"If large enough, the combination of job eliminations and reductions could leave workers earning less income as a result of (the) $20 minimum wage," the report stated.
"For example, even if no jobs are eliminated (a dubious assumption given the BLS data discussed above), a 20% reduction in hours worked with no overtime increases would erase the financial gains from the 25% hourly wage increase, leaving workers with the same or even less total income," it continued.
The California Fast Food Council may consider increasing the minimum wage to $20.70, according to Restaurant Business Magazine.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fast Company
22 minutes ago
- Fast Company
Gavin Newsom is having his social media moment
'Fuck around' and 'find out,' read a TikTok post, following a screenshot announcing that California is suing President Donald Trump for deploying the National Guard to the streets of Los Angeles. But the TikTok wasn't shared by a typical meme account—it came from California Governor Gavin Newsom. 'I damn near fell over when I realized this was Gov. Newsom's page,' one user commented. Since Friday, demonstrations have erupted across Los Angeles in protest of the president's immigration policies and the ongoing Immigration and Customs Enforcement raids. Although many of the demonstrations have remained peaceful, there have been violent incidents including authorities deploying tear gas and rubber bullets, and protestors setting Waymo vehicles ablaze throughout the city. As tensions escalated, the Trump administration deployed the National Guard and Marines—despite objections from local officials—sparking a lawsuit from the state, threats of arrest against Governor Newsom, and a surge of defiant memes. 'And remember kids, the next time anybody tells you 'the government wouldn't do that', oh yes they would,' says the popular TikTok sound used on Newsom's official account video, playing over screenshots of news headlines and images of armed forces confronting demonstrators. In another viral video from the governor's page, which amassed over 5.4 million views, Taylor Swift's 'You Need To Calm Down' plays over a series of photos of the two politicians. 'r u ok?' the post asks, with a caption reading: 'America's keyboard warrior.' Newsom's clapback drew widespread praise in the comments. 'I do disagree with Newsom a lot but him standing up to tyranny and standing with your state takes some serious guts. Hats off to you Newsom,' wrote one user. He's also taken to his personal account to deliver meme-laced messages to Trump—one featuring a photoshopped image of the president wearing a crown, captioned 'send in the troops.' The slideshow ends with a shot from the musical Hamilton, with text reading: 'Democracy is under assault right before our eyes. It's time for all of us to stand up.' The online showdown has significantly boosted Newsom's social media presence, growing his personal TikTok account by approximately 397,000 followers and his official Governor account by 479,000 since Friday. Newsom is the latest in a growing number of politicians leveraging memes and social media to bypass traditional media and speak directly to the public through humor. Famously, Kamala Harris gained momentum during her presidential campaign with ' Brat summer ' and the coconut tree trend, while Joe Biden leaned into the viral ' Dark Brandon ' meme during his reelection campaign. Although meme strategies can generate enthusiasm and visibility, the 2024 election results suggest that online popularity doesn't always translate at the polls.
CBS News
23 minutes ago
- CBS News
Mayor Bass, regional mayors call for end to ICE raids in Southern California: "Our communities are not battlegrounds"
After days of violent and destructive protests in Los Angeles, fueled by an increase in immigration enforcement operations, Mayor Karen Bass and other regional mayors called for an end to Immigration and Customs Enforcement raids. At a news conference Wednesday morning, Bass said the unrest in a portion of Los Angeles started last Friday after immigration operations were carried out in several parts of Southern California. Bass told reporters that LA and surrounding cities were "peaceful" before the raids. Mayor Karen Bass called on the Trump administration to end the immigration enforcement operations taking place across the Southern California region. KCAL News She explained that the raids have caused fear in immigrant communities, and accused President Trump of worsening the situation when he ordered the deployment of National Guard and U.S. Marine troops. She called for an end to ICE raids and the federalization of troops. "When you start deploying federalized troops on the heels of these raids, it is a drastic and chaotic escalation and completely unnecessary," Bass said. Mr. Trump posted on his Truth Social platform, claiming that his decision to deploy troops to LA saved the city from burning to the ground. "The great people of Los Angeles are very lucky that I made the decision to go in and help!!!," he wrote. Her speech came a day after she implemented a curfew in a portion of downtown LA after five consecutive nights of demonstrations, which have escalated to clashes between protesters and law enforcement officers, as well as hundreds of arrests. Since the start of the protests, parts of downtown LA have been covered in graffiti, businesses have been looted and public property has been vandalized. TOPSHOT - A car burns as a demonstrator waves a Mexican national flag during a protest following federal immigration operations, in the Compton neighborhood of Los Angeles, California on June 7, 2025. RINGO CHIU/AFP via Getty Images During an interview Wednesday morning on CBS Los Angeles, Bass explained that the curfew will be extended until it is necessary to ensure public safety. The curfew currently runs for one square mile in the downtown area from the 5 Freeway to the 110 Freeway and from the 10 Freeway to where the 110 Freeway and 5 Freeway merge from 8 p.m. to 6 a.m. Bass has also taken to social media to share how the raids are affecting the city. In a post on X, she wrote, "Angelenos are trying to live their lives—going to work, caring for their families—while facing the constant threat of sudden immigration crackdowns." Other mayors from across Southern California joined Bass, calling for an end to the ICE raids. The Mayor of Huntington Park, Arturo Flores, a U.S. Marine Corps combat veteran, told reporters that the military neighborhoods. "The deployment of Marines on our U.S. soil is an alarming escalation that undermines the values of democracy," Flores said. "Our communities are not battle grounds." Flores said the ICE raids being carried out in his community and others across the region are a form of intimidation that traumatizes hardworking residents. He said fear-based tactics are being used to target immigrant communities. The Mayor of Paramount, Peggy Lemons, added that residents are choosing not to leave their homes or send their children to school out of fear that ICE will take them away. "For many in our city, this has been the most devastating time in recent memory," Lemons said. She said immigrants, who play such an important role in the makeup of the region, should not have to live in constant fear.
Yahoo
26 minutes ago
- Yahoo
Justice Department calls Newsom National Guard lawsuit a ‘crass political stunt'
The Trump administration is urging a federal judge to reject California Gov. Gavin Newsom's bid to block the military from supporting immigration enforcement activities in Los Angeles, calling the lawsuit a 'crass political stunt' and warning that the restraining order Newsom wants would endanger federal personnel. 'That would be unprecedented. It would be constitutionally anathema. And it would be dangerous,' Justice Department lawyers said in a response delivered to San Francisco-based U.S. District Judge Charles Breyer Wednesday. In a pointed, 32-page filing replete with political overtones, the administration contended that Trump's decision to deploy the military to help suppress unrest — stemming from ICE raids and arrests taking place across Los Angeles — is entirely within his authority as commander-in-chief, and unreviewable by the court. Breyer, a Clinton appointee, is set to hold a hearing Thursday afternoon on Newsom's request. The governor initially asked the court to block the deployment within two hours, but the judge agreed to a Justice Department request for 24 hours to respond. Trump has authorized the Pentagon to call up nearly 4,000 members of California's National Guard contingent on a mission to protect Immigration and Customs Enforcement facilities and personnel. Defense Secretary Pete Hegseth has also deployed 700 Marines to Los Angeles. Though federal law generally bars the use of the military to enforce domestic laws, Trump invoked a provision that permits him to call up National Guard troops to protect federal property and personnel when there is a 'rebellion' or 'danger of rebellion.' The Justice Department described the chaotic situation on the ground over the weekend as 'mobs resisting federal authority in a manner that rises to the level of rebellion,' although city and state officials have emphasized that the unrest has impacted only a few relatively small parts of the sprawling metropolis. DOJ lawyers also urged Breyer not to second-guess the president's assessment that military support was needed. Newsom's claim that the law required Trump to consult him before issuing such an order is both wrong and dangerous, DOJ lawyers argued, because it would give state officials an effective veto of the president's military judgment. DOJ attorneys also dismissed as speculative the state's concern that the National Guard or military forces would take part in law enforcement. Images taken on the streets of Los Angeles Tuesday showed Guard forces standing watch as immigration enforcement officers detained and searched potential deportees. The administration argued that those troops were there to protect ICE officials, a distinct mission from carrying out immigration arrests. Justice Department lawyers salted their brief with a series of thinly-veiled political shots at Newsom, speculating that California officials might be 'unwilling' to put a stop to the violence. Two days after Trump suggested Newsom's arrest, the brief also suggests perhaps the governor had broken the law by failing to pass on Trump's order to state Guard officials, although those troops have responded to the president's directive. 'Even if Plaintiffs' interpretation of the statute were correct, the only party acting unlawfully would be Governor Newsom — not President Trump or Secretary Hegseth,' the attorneys wrote. And the Justice Department also quoted Sen. John Fetterman (D-Pa.), who recently criticized fellow Democrats over their posture toward the unrest. The DOJ brief also draws an analogy sure to grate on Newsom: comparing him to Arkansas Gov. Orval Faubus, who sought to use that state's National Guard to resist court-ordered school desegregation in the 1950s. The federal statute Trump invoked 'affords no veto to Governor Newsom over the President's decision to call forth the guard, just as it afforded no veto to Governor Faubus when President Eisenhower last invoked the predecessor [statute] to ensure that the enforcement of federal law was not obstructed,' DOJ lawyers wrote.
