California's $20 Fast Food Minimum Wage Sees No Job Loss, Slight Price Hikes
California's $20 minimum wage for fast food has not caused job losses, with an 18% pay rise for workers and a slight 3.7% increase in menu prices. Proposition 32 proposes an $18 wage by 2026.
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California's implementation of a $20 minimum wage for larger fast food chains has not resulted in job losses, according to a report from UC Berkeley's Institute for Research on Labor and Employment. The wage increase, effective April 1, has led to an average pay rise of 18% for fast food workers, while menu prices have only slightly increased by about 3.7%, equating to roughly 15 cents on a $4 hamburger. The study indicates that employment levels remained stable, with approximately 750,000 fast food jobs reported in both July 2023 and July 2024. This finding aligns with broader research suggesting minimal employment effects from minimum wage increases. As California voters prepare to decide on Proposition 32, which proposes an increase to $18 per hour by 2026 for all employees, concerns have been raised by opponents about potential job cuts and price hikes. However, the current law only applies to chains with 60 or more locations, aiming to protect smaller businesses. Additionally, a Fast Food Council has been established to oversee future wage increases, although some franchise owners have expressed financial strain under the new wage requirements.
- California's $20 minimum wage for fast food has not led to job losses.
- Menu prices increased slightly by about 3.7% following the wage hike.
- The wage increase has benefited hundreds of thousands of workers with an average pay rise of 18%.
- Proposition 32, proposing an $18 minimum wage by 2026, is set for voter decision.
- The law primarily affects larger chains, protecting smaller businesses from immediate impacts.
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