California’s $20 minimum wage requirement for fast-food workers has helped boost earnings for more than 730,000 workers, without affecting employment, with new data revealing that the policy has been beneficial for workers, Governor Gavin Newsom said.
A recent study from the University of California, Berkeley’s Institute for Research on Labor and Employment found that California’s minimum wage policy for fast-food workers resulted in a 11% jump in average weekly wages.
Contrary to the belief that increasing the minimum wage will result in employment, the study found that the $20 minimum wage did not reduce employment.
Prices of food items saw a marginal increase of 1.5%, which was equivalent to 6 cents for a $4 hamburger.
About 50% of the increased wage costs were passed on to customers in the form of higher prices, consistent with a monopsony (higher than competitive) model. Businesses absorb the rest of the increased costs through reduced profit margins, according to the study.
California implemented a $20 hourly minimum wage for workers in large chains in fast-food eateries and snack and non-alcoholic beverage bars on April 1, 2024. To limit the potential financial impact on smaller businesses, the policy excluded chains with less than 60 locations across the U.S., as well as restaurants located inside airports, stadiums, and convention centers.
Researchers said that the $20 minimum wage standard represents a 25% increase over California’s minimum wage, and was the highest in the U.S., outpacing European minimum wages.
While prices in the broader fast food industry surged by 3.3% in California compared to control states in the three quarters following the implementation of the policy, researchers attributed part of the increase to overall trends in the restaurant industry.
Characterizing the study as a “one of the most comprehensive look” at the minimum wage increase, Governor Newsom said it “reaffirms that our commitment to fair wages for fast-food workers is not only lifting up working families but also strengthening our economy.”
Pushing back against criticisms of the minimum wage policy, he said California’s economic growth is driven by the investments in people, prioritizing sustainability, and focusing on innovation.
In addition to helping increase affordability for working individuals, the policy is also helping businesses by retaining workers, according to the governor’s office.
The UC Berkeley study was based on pay data and granular prices from more than 2,000 restaurants in California and control states.
The updated research, which includes granular mobility-based employment data from Advan, builds on previous versions published in September 2024 and September 2025.
In statistics, you can back into any numbers you want to “prove” your point.
For sure, all data is meaningless.
“you can back into any numbers you want to “prove” your point”
YES, like Trump’s name appearing in the Epstein files 38,000 times.
Only if you’re a liar.
All it did was increase costs for the end user, the consumers. This includes the fast food workers who get the $20 an hour. Sure you make more money, but now your dollar is worth less. And now, the same is true for the rest of us. Typical democrat money management.
Lompoc Steve – Now explain to the class how arbitrary tariffs made our dollar worth more. Also explain how Doge saved us money and when i am getting my Doge refund check. MAGAcans are the sickest hypocrites.
Typical lying MAGAt who has no understanding of economics.