California raised the minimum wage of the state’s fast-food workers to $20 per hour on April 1. It wasn’t a silly April Fools joke, and no one was laughing because the law’s devastating effects on restaurants and workers are as bad as its critics predicted.
Last year, California’s Democrat-led legislature passed the bill to hike the minimum wage to $20 for the state’s more than 500,000 fast-food workers, and the state’s Democrat Gov. Gavin Newsom enthusiastically signed it into law despite strong objections from businesses. Newsom claimed the law was “one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast-food workers a stronger voice and seat at the table.” Opponents of the law warned that fast-food restaurants would have to downsize their workforce, scale back remaining workers’ hours, raise prices, or even shut down locations to offset rising costs. The Democrats and the labor unions brushed aside critics’ concerns.
Since April, the critics’ warnings have turned into a harsh reality. Fast-food chains in California, in an effort to adapt to the new regulations, started reducing their workforce last year. The Southern California Pizza Company, for instance, laid off around 841 delivery drivers statewide in December 2023. The California Business and Industrial Alliance (CABIA) reported that fast-food chains have cut nearly 10,000 jobs since Newsom signed the minimum wage hike bill into law last September. These are not just numbers but real people losing their livelihoods. Unfortunately, the job cuts are not over
