How California’s Fast Food Wage Hike Benefits Everyone

FEATURING DR. MICHAEL REICH - In April 2024, California became the first state in the nation to raise its minimum wage for fast food workers of major corporate chains to $20 an hour. Such workers in California have enjoyed the highest base wage in the industry, nationwide. The bill was a recommendation by the statewide Fast Food Council, which has planned another wage hike of 3.5% this year. 

Pro-industry voices trotted out a standard critique of wage hikes. For example, a Forbes.com economist wrote, “there may be unintended consequences that could do more harm to these employees, including restaurant closures, job cuts, reduced hours and increased deployment of automation to bring down expenses.” But a new report shows such fears were unfounded.