Here’s How California’s Fast-Food Minimum Wage Hike Changed Staffing

Increased wage costs drive employers to look for ways to claw back the expense.

BY KIT EATON @KITEATON

In April 2024, certain fast-food restaurants in California had to hike their workers’ wages up to $20, a $4 rise over the state’s general $16 minimum wage. This 25 percent hike was intended to reward staff who work for large franchises, presumably with the understanding that these giant companies could absorb increased employment costs, while smaller, more local establishments may struggle. 

A public policy researcher, in a new study, noted the higher wage bills did have an effect: better pay for affected workers. But they also found that restaurants cut staffing in order to recoup their increased wage costs. The net effect? Critics of the plan may argue it’s zero. Nevertheless, the data has........

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