Current:Home > BackCalifornia's $20 fast food minimum wage didn't lead to major job losses, study finds-InfoLens
California's $20 fast food minimum wage didn't lead to major job losses, study finds
View Date:2024-12-23 15:42:58
A study from the University of California Berkeley’s Institute for Research on Labor and Employment found that a California state law raised the minimum wage for fast food workers did not lead to large job loses or price hikes.
AB 1228 went into effect in the Golden State April 1, setting a $20 per hour minimum wage for those working at fast food restaurants with less than 60 locations nationwide and restaurants located inside airports, stadiums and convention centers. The law further gave employees stronger protections and the ability to bargain as a sector.
"We find that the sectoral wage standard raised average pay of non-managerial fast food workers by nearly 18 percent, a remarkably large increase when compared to previous minimum wage policies," the study, published Sept. 30, said. "Nonetheless, the policy did not affect employment adversely."
The state had approximately 750,000 fast food jobs when the law went into effect, according to the study.
The California Business and Industrial Alliance purchased a full-page advertisement in the Oct. 2 issue of USA TODAY citing data from the Federal Reserve Bank of St. Louis that says that 5,416 fast-food jobs were lost from January to August.
Wage increases lead to small price increases
The study found that after the law went into effect prices saw a one-time increase of 3.7%, or about 15 cents for a $4 item. The study said that consumers absorbed about 62% of the cost increases caused by the law.
In a USA TODAY survey conducted in May, after the law took effect, the most expensive burger combo meal across the major fast-food chains was routinely found outside of California.
The study also suggested that the increase in wages would have positive knock-on effects for restaurants and franchise owners.
"The study closest to ours found that $15 minimum wages in California and New York increased fast-food wages and did not negatively affect fast food employment, while substantially reducing hiring and employee retention costs," the study read.
veryGood! (3926)
Related
- Kentucky woman seeking abortion files lawsuit over state bans
- Terminator 2: Judgment Day, Apollo 13, Home Alone among movies named to National Film Registry
- Nigeria’s Supreme Court reinstates terrorism charges against separatist leader
- Finland reports a rush of migrant crossings hours before the reclosure of 2 border posts with Russia
- Justine Bateman feels like she can breathe again in 'new era' after Trump win
- Early morning blast injures 1 and badly damages a Pennsylvania home
- Tara Reid Details On and Off Relationship With Tom Brady Prior to Carson Daly Engagement
- Suriname’s ex-dictator faces final verdict in 1982 killings of political opponents. Some fear unrest
- Jennifer Hudson, Kylie Minogue and Billy Porter to perform at Macy’s Thanksgiving Parade
- Australian mother Kathleen Folbigg's 20-year-old convictions for killing her 4 kids overturned
Ranking
- Asian sesame salad sold in Wegmans supermarkets recalled over egg allergy warning
- Dog respiratory illness cases confirmed in Nevada, Pennsylvania. See map of impacted states.
- What is wrong with Draymond Green? Warriors big man needs to harness control on court
- A 4-month-old survived after a Tennessee tornado tossed him. His parents found him in a downed tree
- Officer injured at Ferguson protest shows improvement, transferred to rehab
- Moldova and Georgia celebrate as their aspirations for EU membership take crucial steps forward
- Mexico closes melon-packing plant implicated in cantaloupe Salmonella outbreak that killed 8 people
- Queen Camilla is making her podcast debut: What to know
Recommendation
-
Olivia Culpo Celebrates Christian McCaffrey's NFL Comeback Alongside Mother-in-Law
-
Cher has choice words for Rock & Roll Hall of Fame after snub
-
Cowboys star Micah Parsons goes off on NFL officiating again: ‘They don’t care’
-
Michigan State reaches settlements with families of students slain in mass shooting
-
Why the US celebrates Veterans Day and how the holiday has changed over time
-
AP Week in Pictures: Global | Dec. 8 - Dec. 14, 2023
-
Apple adds Stolen Device Protection feature to new iOS beta
-
Greta Gerwig named 2024 Cannes Film Festival jury president, first American female director in job