California’s $20 Minimum Wage Will Hurt the Fast Food Workers It’s Meant to Help

October 12, 2023

Boosting minimum wages often increases unemployment and raises prices.

by Emma Camp Reason.com

Last month, Gavin Newsom signed into law a California bill that will raise the minimum wage for fast food workers to $20 an hour starting in 2024. While the law has been hailed as a victory for low-wage Californians, the reality is much more complicated.

When states force industries to massively increase wages, the result isn’t that the same number of employees start making more money. Instead, enacting a climbing minimum wage often results in higher unemployment and higher prices.

The law, originally Assembly Bill 1228 was passed as a compromise measure. Last September, Newsom signed the Fast Food Accountability and Standards (FAST) Recovery Act, which would have increased the minimum wage for fast workers to up to $22 an hour.