**In Case You Missed It**
For Immediate Release: May 22, 2025
Contact: Molly Weedn, molly@weednpa.com
Sacramento, CA – Staggering federal data showcases the real-world impacts of AB 1228, California’s $20/hour fast food minimum wage law passed in 2023, and finds the law is costing restaurant workers more than just job opportunities—it’s costing them hours on the clock.
The Employment Policies Institute (EPI) reviewed federal labor data from the U.S. Census Bureau and Bureau of Labor Statistics’ Current Population Survey – Outgoing Rotation Group (CPS-ORG) and found that non-tipped restaurant workers—many in fast food—have lost up to five hours per week since the law took effect in April 2024. Over the course of a year, that reduction equates to as many as 250 lost hours per worker—or seven weeks of lost work—and thousands of dollars in lost wages.
“This new data adds to the overwhelming mountain of evidence that California’s AB 1228 has hurt the livelihoods of local fast food employees and restaurants,” the report added.
Image Source: EPI analysis of U.S. Census Bureau and Bureau of Labor Statistics’ Current Population Survey – Outgoing Rotation Group (CPS-ORG) data.
In addition to lost hours and lost wages, broader industry data underscores the far-reaching consequences of AB 1228 to the industry, its workers and consumers:
- Deepening Cuts to Worker Hours: 87% of local restaurant owners impacted by the $20/hour wage mandate reported they expect to make further employee hour reductions this year to offset rising costs.
- 14.5% Increase in Food Prices: A report by the Berkeley Research Group found food prices at California’s fast food restaurants have surged by 14.5% since September 2023—nearly double the national average of 8.2%.
- Technology and Automation are Replacing Workers to Offset Increased Labor Costs: Restaurants are accelerating the use of ordering kiosks, AI drive-thru systems, and robotic kitchen automation, reducing available entry-level jobs and shrinking employment per location.
For the full analysis, visit Employment Policies Institute.