How California’s Fast-Food Wage Hike Benefits Everyone

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In April 2024, California became the first state in the nation to raise the minimum wage for fast-food workers at major corporate chains to $20 an hour. These workers now enjoy the highest base wage in the industry nationwide. The bill was recommended by the California-based Fast Food Council, which is expected to vote on an additional wage hike of 3.5% this year. 

Pro-industry voices have trotted out standard critiques of the wage hike. “Although the bump in pay is intended to help improve the standard of living for more than half a million fast-food workers, there may be unintended consequences that could do more harm to these employees, including restaurant closures, job cuts, reduced hours, and increased deployment of automation to bring down expenses,” wrote Jack Kelly in Forbes.

But a new report by University of California at Berkeley professor Michael Reich, Ph.D., proves that such fears are unfounded. Reich, who chairs the Center on Wage and Employment Dynamics, spoke with YES! Senior Editor Sonali Kolhatkar on YES! Presents: Rising Up With Sonali about the overall impact of the fast food wage hike.