California Minimum Wage Study
About the Study
California recently took the unprecedented step of increasing the minimum wage for a single category of workers: those employed by certain fast food restaurants. Assembly Bill (AB) 1228 raised the minimum wage for these workers by 25%, to $20 per hour, effective April 1, 2024. This increase followed a minimum wage increase of 50 cents per hour for all California workers (including fast food employees) that raised the minimum wage from $15.50 to $16.00, effective January 1, 2024.
In this paper, the authors analyze the economic effects of AB 1228’s minimum wage increase from the standpoint of fast food workers’ economic well-being. This is appropriate because AB 1228’s proponents seek to justify the sharp increase in the minimum wage as a means to raise worker income and standard of living. The $20 per hour minimum wage will also have significant economic effects on two other important groups: (1) owners and operators of fast food restaurants, which face higher operating costs as a result of the higher minimum wage; and (2) consumers who are paying higher prices when they order meals at these restaurants.
Read the full paper here.
Authors
The authors of this study were retained by Save Local Restaurants. Analyses and opinions expressed are those of the authors and not of Berkeley Policy Institute.