We tried to warn them.
It's been a year and a half since Gavin Newsome signed California's $20/hour minimum wage for Fast Food workers into law.
How it started: oh, lordy, it was ballyhooed. Governor Newsom hooed the loudest bally:
“California is home to more than 500,000 fast-food workers who – for decades – have been fighting for higher wages and better working conditions. Today, we take 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.”
“Today, we witnessed the signing of one of the most impactful fast food wage laws that this country has ever seen,” said Assemblymember Holden. “We did not just raise the minimum wage to $20 an hour for fast food workers. We helped a father or mother feed their children, we helped a student put gas in their car, and helped a grandparent get their grandchild a birthday gift. Last month, when we were knee deep in negotiations, hundreds of workers slept in their cars and missed pay days to come give their testimony in committee and defend their livelihood. Sacrifice, dedication, and the power of a government who serves its people is what got us to this moment. My goal for AB 1228 was to bring relief and solutions where they were needed and together with my colleagues and Governor Newsom, that is what we have done. Thank you to the SEIU and all who supported this important effort. We, as a state, should be proud.”
Whenever blue-state offficials start talking about making things "vibrant", hang onto your wallet and keep your head on a swivel.
Anyway - how's it going?
Oh, why even pretend we don't know?
Confidential Bulletin is back for the 1 year anniversary of #AB1228 and CA lost thousands of QSR jobs last year. Chris Thornberg, Ph.D. breaks down the numbers.
— @CalRestaurants (@CalRestaurants) April 18, 2025
🎧 Apple Podcasts: https://t.co/xK6Uk81Rc4
🎧 Spotify: https://t.co/eD1bvsRjn1
📺 YouTube: https://t.co/T649BLHk3f pic.twitter.com/52JJUHRP9Q
Conservatives predicted it, almost down to the numbers:
Before April 1, 2024, thousands of fast food jobs were shed by companies in anticipation for the higher costs, including Pizza Hut who let go 1,200 drivers alone. Lawmakers also knew that there was suddenly going to be a lot of lost jobs, and hastily brought in exemptions for fast food restaurants in airports, stadiums, theme parks and other major public areas.
Nonetheless, job losses quickly mounted after April 1st of last year when the law went online. Not only job losses either – many workers found that they were now working fewer hours or lost a shift as a result. In addition, restaurants automated what they could to avoid the higher wages, including investing in touch screen kiosks over having more traditional cashiers. Some fast food restaurants also closed, as the 25% wage increase from $16 to $20 ruined their thin profit margins.
By June 2024, Stanford University found that over 10,000 fast food jobs were already lost. The Governor’s office swiftly denounced this figure, saying that the number of fast food jobs actually went up. They even went so far as to admonish many media outlets, including the Globe, for reporting the 10,000 job loss figure. While the Governor’s office tried for a few more months to convince Californians that AB 1228 actually brought about fast food job gains, they stopped by the fall when it became apparent that federal data wasn’t on their side. By November, the losses stemming from AB 1228 irked voters so much that they voted soundly against Prop 32, which would have raised the minimum wage statewide to $18.
That last sentence caught me by surprise. Blue state voters rejecting a mininum wage hike?
What next? People wearing parkas in Malibu?
