Please ensure Javascript is enabled for purposes of website accessibility
How Has Fast Food's $20 Minimum Wage Affected Employment? Data Shows Hiring Up
gvw_edward_smith
By Edward Smith
Published 2 days ago on
July 2, 2024

Fast-food workers, including those at In-N-Out restaurants, received a $4 minimum wage increase in April after a California law took effect. (Shutterstock)

Share

Getting your Trinity Audio player ready...

After fears that California’s $20 minimum wage for fast-food workers would decimate the industry, new data shows restaurant hiring increased in the two months since the raise’s implementation.

In April, the minimum wage for fast-food workers at businesses with more than 60 locations leaped to $20 an hour, from the statewide rate of $16. The 25% overnight increase had business owners, politicians, and industry representatives denouncing the move, claiming companies would have to lay off tens of thousands to afford higher payroll costs.

But labor data shows an increase in fast food hiring, and one company says the higher wage is helping retain employees.

“We are a state that gives a damn about fast food workers — who are predominantly women — working two and a half jobs to get by,” said Gov. Gavin Newsom. “Because of the leadership of California’s Legislature, these hard workers finally got the raise and job security they deserved. And the companies themselves got a more stable workforce.”

‘10% Improvement in Turnover’: Raising Cane’s

The U.S. Bureau of Labor Statistics shows employment for limited-service restaurants climbing to 745,600 people in May in California — up from 742,600 the year before and 739,500 in April.

“Limited service” includes restaurants, pizzerias, delis, and many other restaurant types not included in the mandated minimum wage increase.

Since January, that industry sector has added 20,700 jobs.

A representative from chicken restaurant Raising Cane’s Chicken Fingers said the minimum wage bump was a positive.

“We have seen an almost 10% improvement in turnover since increased wages, and our retention rate has also seen a positive impact,” a Raising Cane’s spokeperson said.

Some Restaurants Respond With Bankruptcies, Price Hikes

In response to the increase, In-N-Out increased menu prices.

“I was sitting in VP meetings going toe-to-toe saying, ‘We can’t raise the prices that much, we can’t,'” In-N-Out President Lynsi Snyder said in an April interview on the “Today” show.

San Diego-based Rubio’s Coastal Grill in June declared bankruptcy after closing 48 restaurants, citing the rising cost of doing business in California.

RELATED TOPICS:

DON'T MISS

‘Inside Out 2’ | Anatomy of a Scene

DON'T MISS

This Supreme Court Strikes Against Democracy, Again and Again

DON'T MISS

Your Get-Out-of-Jail-Free Card Is Ready, Sir

DON'T MISS

Big Donors Turn on Biden. Quietly.

DON'T MISS

The Best Concerts of 2024 So Far: AP’s Picks Include Olivia Rodrigo, Bad Bunny, George Strait, SZA

DON'T MISS

Does a Proposed $10 Billion Bond Favor Richer California School Districts?

DON'T MISS

NFL Is Liable for $4,707,259,944.64 in ‘Sunday Ticket’ Case

DON'T MISS

UN General Assembly President: Election Won’t Alter Ukraine Support

DON'T MISS

AI Is Learning From What You Said on Reddit, Stack Overflow or Facebook. Are You OK With That?

DON'T MISS

Melting of Alaska’s Juneau Icefield Accelerates, Losing Snow Nearly 5 Times Faster Than in the 1980s

UP NEXT

This Supreme Court Strikes Against Democracy, Again and Again

UP NEXT

Your Get-Out-of-Jail-Free Card Is Ready, Sir

UP NEXT

Big Donors Turn on Biden. Quietly.

UP NEXT

The Best Concerts of 2024 So Far: AP’s Picks Include Olivia Rodrigo, Bad Bunny, George Strait, SZA

UP NEXT

Does a Proposed $10 Billion Bond Favor Richer California School Districts?

UP NEXT

NFL Is Liable for $4,707,259,944.64 in ‘Sunday Ticket’ Case

UP NEXT

AI Is Learning From What You Said on Reddit, Stack Overflow or Facebook. Are You OK With That?

UP NEXT

Melting of Alaska’s Juneau Icefield Accelerates, Losing Snow Nearly 5 Times Faster Than in the 1980s

UP NEXT

To Save Spotted Owls, US Officials Plan to Kill Hundreds of Thousands of Another Owl Species

UP NEXT

July 4th Quiz: ‘Our Lives, Our Fortunes and Our Sacred Honor’

Edward Smith,
Multimedia Journalist
Edward Smith began reporting for GV Wire in May 2023. His reporting career began at Fresno City College, graduating with an associate degree in journalism. After leaving school he spent the next six years with The Business Journal, doing research for the publication as well as covering the restaurant industry. Soon after, he took on real estate and agriculture beats, winning multiple awards at the local, state and national level. You can contact Edward at 559-440-8372 or at Edward.Smith@gvwire.com.

Big Donors Turn on Biden. Quietly.

7 hours ago

The Best Concerts of 2024 So Far: AP’s Picks Include Olivia Rodrigo, Bad Bunny, George Strait, SZA

8 hours ago

Does a Proposed $10 Billion Bond Favor Richer California School Districts?

9 hours ago

NFL Is Liable for $4,707,259,944.64 in ‘Sunday Ticket’ Case

10 hours ago

UN General Assembly President: Election Won’t Alter Ukraine Support

13 hours ago

AI Is Learning From What You Said on Reddit, Stack Overflow or Facebook. Are You OK With That?

14 hours ago

Melting of Alaska’s Juneau Icefield Accelerates, Losing Snow Nearly 5 Times Faster Than in the 1980s

15 hours ago

Abandoned at Birth, This Happy Puppy Is Ready for Adoption

15 hours ago

To Save Spotted Owls, US Officials Plan to Kill Hundreds of Thousands of Another Owl Species

15 hours ago

July 4th Quiz: ‘Our Lives, Our Fortunes and Our Sacred Honor’

15 hours ago

‘Inside Out 2’ | Anatomy of a Scene

The director Kelsey Mann narrates a sequence from his film. – By The New York Times Copyright 2024 The New York Times Company Distribu...

4 hours ago

4 hours ago

‘Inside Out 2’ | Anatomy of a Scene

5 hours ago

This Supreme Court Strikes Against Democracy, Again and Again

6 hours ago

Your Get-Out-of-Jail-Free Card Is Ready, Sir

7 hours ago

Big Donors Turn on Biden. Quietly.

8 hours ago

The Best Concerts of 2024 So Far: AP’s Picks Include Olivia Rodrigo, Bad Bunny, George Strait, SZA

9 hours ago

Does a Proposed $10 Billion Bond Favor Richer California School Districts?

10 hours ago

NFL Is Liable for $4,707,259,944.64 in ‘Sunday Ticket’ Case

13 hours ago

UN General Assembly President: Election Won’t Alter Ukraine Support

Search

Send this to a friend