UC study: California's new $20 fast food minimum wage did not lead to mass layoffs, price hikes

The study, published on September 30, found that the sectoral wage standard increased the average pay for non-managerial fast food workers.Photo byengin akyurtonUnsplash

A recent study by the University of California Berkeley’s Institute for Research on Labor and Employment has revealed that California's minimum wage law for fast food workers, AB 1228, has not resulted in significant job losses or price increases. Implemented on April 1, the law established a minimum wage of $20 per hour for employees at fast food restaurants with fewer than 60 locations nationwide, as well as those located in airports, stadiums, and convention centers.

The study, published on September 30, found that the sectoral wage standard increased the average pay for non-managerial fast food workers by nearly 18%, a substantial rise compared to previous minimum wage initiatives. Remarkably, despite these wage increases, the policy did not negatively impact employment levels within the state’s fast food sector.

At the time the law took effect, California boasted around 750,000 fast food jobs, underscoring the law's significance in improving worker compensation without detrimental effects on job availability.