California has lost over 6,000 fast food restaurant jobs since September 2023 due to the state’s recent law increasing fast food minimum wages, according to an analysis released Thursday by the Employment Policies Institute (EPI).
Since the law’s passage in September 2023, the state’s privately-owned fast food restaurants have lost 6,166 jobs through June, according to the report. Prior research shows some California restaurants began bracing for the minimum wage increase before the law took effect by taking measures such as downsizing staff, reducing scheduled hours or raising menu prices, according to the EPI.
Democratic California Gov. Gavin Newsom signed AB 1228 into law in September 2023. The law increased the minimum wage for fast food restaurant employees so that they must be paid at least $20 per hour beginning in April, and also established a Fast Food Council.