Newsom hates young people, the middle class and jobs. He $20 an hour wage for fast food workers, so far has cost 36,000 jobs. Not mentioned is that the remaining workers are working fewer hours, thus, even with the increased pay, getting paid less. In their place are computers, kiosks and closed stores.
“According to the seasonally adjusted BLS data, the number of “All Employees: Leisure and Hospitality: Limited-Service Restaurants and Other Eating Places in California” fell from 740,105 in September 2023 (When AB 1228 was signed into law) to 730,078 in April 2024 (When AB 1228 went into effect) to 703,540 in April 2025. In total, 10,027 fast food jobs were lost between September 2023 and April 2024, with 36,565 being lost between September 2023 and April 2025.
The 36,565 number is more of the worst case scenario in terms of job loss, as only three months ago the BLS’ Current Employment Statistics (CES) was reporting that 22,717 fast food jobs have been lost in the past year when seasonally adjusted.”
Government is the problem, not the solution.
New Federal Data Reveals California Has Lost Over 36,000 Fast Food Jobs Since $20 Minimum Wage Law
‘These aren’t just numbers; they’re real people who lost their livelihoods’
By Evan Symon, California Globe, 6/5/25 https://californiaglobe.com/fr/new-federal-data-reveals-california-has-lost-over-36000-fast-food-jobs-since-20-minimum-wage-law/?fbclid=IwY2xjawKu7wdleHRuA2FlbQIxMABicmlkETF6cEZrM1ZqQVNMN2sybEJ3AR7tojlluEep6VShuReHJLOfpN0Ep0NiFp6Lj8qLS8gQyS8CMujkaCofgEZkAw_aem_hVSVey4dLCiS3mBubyydxQ
New data from the federal Bureau of Labor Statistics was released Thursday, revealing a staggering 36,565 fast food jobs have been lost since September 2023 when the $20 per hour minimum wage law, AB 1228, was signed into law.
According to the seasonally adjusted BLS data, the number of “All Employees: Leisure and Hospitality: Limited-Service Restaurants and Other Eating Places in California” fell from 740,105 in September 2023 (When AB 1228 was signed into law) to 730,078 in April 2024 (When AB 1228 went into effect) to 703,540 in April 2025. In total, 10,027 fast food jobs were lost between September 2023 and April 2024, with 36,565 being lost between September 2023 and April 2025.
The 36,565 number is more of the worst case scenario in terms of job loss, as only three months ago the BLS’ Current Employment Statistics (CES) was reporting that 22,717 fast food jobs have been lost in the past year when seasonally adjusted. It also differs from a BLS Quarterly Census of Employment and Wages (QCEW) report from March that showed that California lost as many as 16,000 fast food jobs. While the exact number of lost fast food jobs is likely to be exact thanks to so many different parameters for data gathering, the new data released on Thursday showed a continued drop in fast food jobs, demonstrating that the industry still hasn’t recovered since AB 1228 was first put into place.
In addition to 90% of all fast food restaurants having workers discharged for businesses to stay afloat, increasing automation, AI usage at drive-thrus and digital ordering kiosks inside fast food restaurants have also accelerated the pace of job loss occurring in the industry in California. All this uncertainty, amplified by fast food prices going up 14.5% in California compared to the 8.2% national average, have put the fast food industry in a dark spot in the golden state.
“The $20/hour minimum wage law has had devastating consequences for businesses like mine,” explained Altaf Chaus, who owns and operates three Burger King franchise restaurants in San Jose, on Thursday. “These mandated cost increases haven’t just hurt me as a business owner—they’ve hurt my employees. After the wage hike, I had no choice but to shut down one of my restaurants, which meant laying off my entire team. These aren’t just numbers; they’re real people who lost their livelihoods. Policymakers should take notice of the damage this wage hike has had on employees, our small businesses and the communities we serve.”
More struggles for the AB 1228 law
AB 1228, authored by then-Assemblyman Chris Holden (D-Los Angeles), was one of the most contentious bills in 2023. The Holden bill originally tried for a $22 wage for fast food workers, but was negotiated down, with the $20 amount narrowly passing both houses in the California legislature and signed by Governor Gavin Newsom.
Before the actual implementation of April 1, 2024, thousands of fast food jobs were shed by companies in anticipation for the higher costs, including Pizza Hut who let go 1,200 drivers alone. In addition, lawmakers knew that there was suddenly going to be a lot of lost jobs, and hastily brought in exemptions for fast food restaurants in airports, stadiums, theme parks and other major public areas.
Nonetheless, job losses quickly mounted after April 1st of last year when the law came online. Not only job losses either – many workers found that they were now working fewer hours or lost a shift as a result. In addition, restaurants automated what they could to avoid the higher wages, including investing in touch screen kiosks over having more traditional cashiers. Some fast food restaurants also closed, as the 25% wage increase from $16 to $20 ruined their thin profit margins.
By June 2024, Stanford University found that over 10,000 fast food jobs were already lost. The Governor’s office swiftly denounced this figure, saying that the number of fast food jobs actually went up. They even went so far as to admonish many media outlets, including the Globe, for reporting the 10,000 job loss figure. While the Governor’s office tried for a few more months to convince Californians that AB 1228 actually brought about fast food job gains, they stopped by the fall when it became apparent that federal data wasn’t on their side. By November, the losses stemming from AB 1228 irked voters so much that they voted soundly against Prop 32, which would have raised the minimum wage statewide to $18.
As the new BLS data proves, things only grew worse for the industry in 2025. In addition to the massive spike in job loss, many large chains, including Jack in the Box, saw them closing dozens of California locations so far this year. Even the SEIU and other unions have admitted this year that AB 1228 has caused job loss in California. The Fast Food Council is also considering a raise at their next meeting to $20.70 for workers, something which could make the situation even worse.
In any case, even the most conservative figures have shown massive fast food industry job loss, with no real plan to rectify it outside of freezing the current $20 wage and waiting for inflation and the general minimum wage to catch up.
