**In Case You Missed It**
For Immediate Release: June 5, 2025
Contact: Molly Weedn, molly@weednpa.com
Sacramento, CA – New seasonally-adjusted data from the Bureau of Labor Statistics (BLS) confirms the severe and accelerating economic fallout from California’s $20 fast food minimum wage law. Since Assembly Bill 1228 was signed into law in September 2023, the state has lost 36,565 fast food jobs, with the steepest losses occurring after the law officially took effect in April 2024.
“The $20/hour minimum wage law has had devastating consequences for businesses like mine,” said Altaf Chaus, who owns and operates three Burger King franchise restaurants in San Jose. “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.”
Fast Food Job Losses Since AB 1228:
| Month | Fast Food Jobs (NAICS 722513) | Total Job Loss |
| September 2023(AB 1228 signed into law) | 740,105 | |
| April 2024($20/hr minimum wage takes effect) | 730,078 | -10,027 |
| April 2025(latest available data) | 703,540 | -36,565 |
The damage goes beyond lost jobs. Other evidence exposes broader economic pain on local restaurant owners, workers and consumers:
- Workers Lost Approximately 7 Weeks of Work: According to the U.S. Census Bureau and Bureau of Labor Statistics’ Current Population Survey – Outgoing Rotation Group (CPS-ORG) non-tipped restaurant workers in California lost a median of 5 hours per week after AB 1228 took effect—equivalent to nearly two months of work per year.
- A survey of local restaurant owners confirms this data: Nearly 90% of local restaurant owners impacted by the $20/hour minimum wage reported reducing employee hours to offset rising costs, with 87% planning additional cuts over the next year.
- 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 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.
Despite these consequences, the California Fast Food Council is set to discuss an additional wage increase for fast food workers at its next meeting. Earlier this year, more than 1,000 local restaurant owners sent a letter to the Fast Food Council and Governor Gavin Newsom, urging them to halt these discussions and consider the economic damage already inflicted on small businesses, workers and consumers.
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Learn More: SaveLocalRestaurantsCA.com