California's $20 minimum wage law for fast-food workers has had some backlash and unintended effects since it took effect in April 2024, as businesses are passing on costs to customers, cutting jobs or hours for employees, and investing in automation to reduce reliance on human workers, according to U.S.-based nonprofit research organization Employment Policies Institute.
California Gov. Gavin Newsom's $20 wage "has turned out to be nothing more than a boost to his own ego at the expense of fast-food workers," Rebekah Paxton, research director at EPI, told the Washington Examiner.
"His consistent claim that the law is a 'win' is out of touch with reality, and lawmakers looking to mirror his job-crushing policies should think twice."
EPI reported a loss of 19,100 jobs since Newsom signed the bill, representing 3.4% employment loss for the industry.
"This is a striking trend that is unique to the Golden State since the law was enacted. It is more than double the rate of losses experienced by California's other industries and similarly double the rate of employment losses in fast food nationwide," EPI said in its report.
"These grim statistics should be a wake-up call for Newsom and other policymakers pushing for drastic wage hikes that will cause unintended consequences," Paxton said.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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