Posts tagged AB 1228
Op-ed: New Economic Study Finds California’s $20 Fast Food Minimum Wage Caused 18,000 Job Losses
July 16, 2025 // As the Globe warned, thousands of fast food employees lost jobs, employees’ hours were cut, and business owners had to do more with less. The data comes just over one year after AB 1228’s implementation, and as Los Angeles considers a drastic union-backed $30 wage hike for hotel and tourism workers that would follow the fast food wage law’s precedent of economic destruction, EPI reports.
SEIU Researchers Admit $20 Wage Law Caused Fast Food Job Losses
February 27, 2025 // As EPI notes, the evidence is from an unexpected source: “…the same labor union that pushed for the $20 policy.” “EPI has been a leading voice on the consequences of this law, releasing multiple reports based on government data that show the state’s $20 minimum wage is costing jobs. In an attempt to cover up these consequences, unions have supported biased researchers who are supportive of $20.”
California’s $20 Fast-Food Minimum Wage: Job Losses, Higher Food Prices, Increased Automation
February 19, 2025 // The BRG study found, “California’s fast-food restaurants lost 10,700 jobs between June 2023 and June 2024, making it the worst performing year outside of a recession, and the COVID-19 pandemic. Additionally, food prices at local restaurants have increased by 14.5% since the legislation was signed, nearly double the national average. AB 1228 was signed into law in October 2023 by Governor Gavin Newsom, creating the new $20 minimum wage for fast food employees – a massive 25% increase from the $16 minimum wage.
Restaurant Minimum Wage Hurting Businesses and the Workers Proponents Seek to Help
January 10, 2025 // For fast food operators, it’s not just this latest minimum wage increase. Since 2013, their minimum wages have increased from $8 to $20, which is 2.5 times. It’s unsurprising that they’re slashing jobs, cutting hours and raising prices. This also coincides with a major turn towards automation. Of course, automation is driven by many factors, not just increased labor costs – but they certainly don’t help.
Commentary: Gov. Newsom Exposed for Gaslighting on California’s Fast Food Industry Job Loss
December 9, 2024 // Most notable, however, has been the massive amount of layoffs. While many stores let only a few employees go, others had more drastic numbers. Pizza Hut alone laid off 1,200 delivery drivers due to the higher costs. Others, including Roundtable Pizza, did the same, pushing delivery duties onto services like DoorDash and Uber Eats. “Newsom can’t hide behind debunked reports from widely criticized economists,” Rebekah Paxton, research director at the Employment Policies Institute, told the Globe. “The BLS data speaks for itself. Jobs are down and his constituents are suffering because of this bad law. Newsom has found himself in a hole and should just stop digging.”
CALIFORNIA: Dave’s Hot Chicken tests kiosks, bigger drinks in face of $20 CA wage
April 3, 2024 // “We didn’t see the ability to pull labor out of the restaurant, but we did see some positive impact on sales,” Bitticks said. Dave’s labor deployment at the cash register — the position most likely to be replaced by kiosks — is already fairly small. The brand still needs workers present to assist customers with kiosks, in the same way grocery stores deploy workers to oversee the self-checkout process, he said. Tickets placed at kiosks are about 7% to 8% higher than orders placed with an employee, Bitticks said. This increase is driven by greater orders of the brands’ entrees, and possibly by guests trying new items they notice on their own, rather than trying items based on conscious upselling. Dave’s managers report customers across age demographics are using the kiosks, Bitticks said, rather than just younger diners.
SEIU, allies say $20 fast food wage should have minimal impact on employment
April 3, 2024 // “Our fight was never just about the raise, but having the power to improve our industry,” said Angelica Hernandez, a Los Angeles McDonald’s worker and member of the Fast Food Council created by AB 1228. Hernandez, speaking through an interpreter at a press event hosted by the Service Employees International Union and the Roosevelt Institute, a liberal American think tank, said employers are retaliating against supporters of AB 1228.
California Gov. Gavin Newsom Signs Bill To Carve Out Exemptions For New Minimum Wage Law Following ‘PaneraGate’ Scandal
March 27, 2024 // Pretty much, AB 610 now proposes to exempt fast food restaurants located in places which could most afford the $20 minimum wage increase because off how much more they charge already: at casinos, airports, hotels, event centers, theme parks, museums, gambling establishments, corporate campus cafeterias, and publicly owned lands including ports, piers, beaches and parks concessions. Only the mom and pop family-owned fast food restaurants will be paying the $20 per hour minimum wage – a “living wage.”
Here’s what might happen after California raises fast-food wages to $20, from higher burger and pizza prices to better wages for retail workers
March 7, 2024 // Tower said he expected fast-food chains to focus on their value deals in California to attract customers amid higher menu prices. Zackfia said she thought digital order kiosks, which restaurants are rolling out to save on labor costs and improve order accuracy, would spread "even more quickly" in California.
Opinion: California’s minimum wage woes are a cautionary tale for the nation
January 10, 2024 // California politicians seem to have a penchant for doing whatever they can to reduce housing affordability and otherwise increase the cost of living in the state — high taxes, burdensome labor and environmental mandates, waste for boondoggles like the high-speed rail project and countless other laws and regulations. Then they attempt to be saviors by passing still more laws to benefit one group or another and alleviate the situation they have largely created.