California fast-food minimum wage hike linked to job losses, study finds

FRESNO, Calif. (FOX26) — A study conducted by the Pepperdine School of Public Policy and Beacon Economics has shown that California’s Fast Act has resulted in significant job losses within the state’s fast-food industry.

The report, titled “Jumping the Gun on the Fast Act,” analyzed the revised employment data from the California Employment Development Department (EDD).

The results challenge earlier reports that suggested the wage increase had minimal negative impact.

The study indicates that revised employment estimates show a decline of over 23,100 jobs, or 3.2%, in the limited-service restaurant sector over the past year.

During the same period, the rest of the country experienced a growth of 0.8% in the same category.

The findings suggest that initial claims of the Fast Act’s success were premature and based on incomplete data.

“This new data should be a wake-up call for policymakers,” said Christopher Thornberg, Founding Partner at Beacon Economics. “The employment losses in California’s fast-food industry are now evident, and they confirm what many had warned about: drastic wage hikes create real economic consequences, especially for entry-level workers.”

The report warns that the Fast Act’s negative effects may extend beyond employment numbers, potentially impacting business sustainability, employee work hours, and benefits.

It urges the Fast Food Council to pause any further regulatory changes until unbiased, comprehensive research is conducted.

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