California – Following a bold statewide push to improve earnings for frontline food workers, a recent wage policy shift has reshaped the employment landscape. California’s decision to increase the minimum wage for fast food workers has significantly reduced jobs, raising broader questions about labor stability and workplace protections.
Minimum Wage Increase and Its Impact
In September 2023, Governor Gavin Newsom signed Assembly Bill 1228, creating a Fast Food Council and raising California’s fast food minimum wage from $16 to $20 per hour, effective April 1, 2024. The law aimed to improve conditions for over 500,000 fast food employees.
Initially praised as a major win for workers, the law unintentionally reduced employment. A recent National Bureau of Economic Research report found a 2.7% drop in California fast food jobs—an estimated loss of 18,000 positions—while other states saw slight job growth.
The average weekly hours also fell from 40 to 35, resulting in a $4,000 loss in annual income potential. Despite a 12.5% increase in gross earnings for retained workers, many others were displaced from the industry.
Wage and Hour Claims: What This Means for Fast Food Workers
California’s minimum wage hike exposed several critical issues surrounding labor law:
- Reduction in hours and job loss may signal violations of fair scheduling or retaliatory employment practices.
- Fast food workers may be unaware of their rights regarding wrongful termination, unpaid wages, or discrimination following restructuring.
- Employers adjusting to higher wage requirements are still legally bound to respect California’s labor codes and workplace safety standards.
If you were laid off or suspect a labor law violation, an employment lawyer can help assess your eligibility for compensation or other remedies under state and federal laws.
We’re Here to Help – Free Consultations Available
Our employment lawyer offers guidance if you’ve been impacted by recent minimum wage changes in the fast food industry—whether through job loss or unfair treatment. We offer free consultations to help you understand your rights and explore all available legal options.
Contact us today to speak confidentially with a labor law professional who advocates for California’s workers.
