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Did California’s Fast-Food Minimum Wage Reduce Employment?
On April 1, 2024, California raised its minimum wage from $16 to $20 per hour for fast-food workers employed at chains with more than 60 locations nationwide. This increase went entirely into effect at once―six months after the passage of Assembly Bill (AB) 1228 in September 2023―resulting in an approximate 8 percent wage increase in California’s fast-food sector relative to the fast-food sector elsewhere in the country. This was one of the largest one-time minimum wage increases in US history, and one of the few focused on a single industry in recent decades.
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