Opinion: California’s wage bump doesn’t spell doom for fast food

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Wage hikes won’t cost jobs, say economists, and any small price increases won’t deter anyone from buying a burger.

California Gov. Gavin Newsom signs the fast food bill surrounded by fast food workers in Los Angeles on Sept. 28, 2023. California fast food workers will be paid at least $20 per hour under the new law.On Monday the minimum wage for California fast food workers increased to $20 an hour, or 25% above the state’s $16 level.

We found that fast food employment in California and New York did not fall, compared to employment trends in the lower-wage areas. In fact, in the low-unemployment years after the pandemic, fast food employers in the $15 counties added workers. By raising pay to meet the higher minimums, fast food restaurants were better able to attract workers to fill the vacant jobs. And those workers stayed longer.

 

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