California's $20 Minimum Wage for Fast Food Workers Shows No Job Losses, Study Finds

Recent studies reveal that the wage increase led to higher pay without significant employment cuts or major price hikes in the fast food sector.

The University of California Berkeley and Harvard Kennedy School studies found no significant job losses following the wage hike to $20 an hour for fast food workers.
The wage increase, effective April 1, 2024, resulted in an 18% rise in average hourly wages for fast food employees.
Contrary to initial fears, the studies reported only a modest 3.7% increase in menu prices, suggesting businesses absorbed much of the added costs.
The new wage law is considered the highest in the nation and affects approximately 750,000 fast food workers in California.
The reports highlight that the wage hike did not lead to reductions in fringe benefits or hours for workers at large fast-food chains.