California $20 Fast Food Wage Sparks Backlash

According to the Employment Policies Institute (EPI), California has shed nearly 20,000 fast-food jobs since the law was signed — accounting for almost one-quarter of all fast-food job losses nationwide over the same period. The analysis draws from Bureau of Labor Statistics data, which paint a bleak picture for one of California’s largest entry-level job sectors.

Advertisement The job losses are not just statistics. Two major Pizza Hut franchisees recently laid off more than 1,200 delivery drivers, citing the steep rise in labor costs. Other chains, including Mod Pizza and Foster’s Freeze, have decided to close California locations altogether. For many small-business franchisees, razor-thin margins disappeared overnight once payroll costs spiked.

Even those who still have jobs are losing out. EPI estimates non-tipped restaurant workers have seen their hours slashed by an average of 250 annually — the equivalent of $4,000 in lost income under the state’s previous minimum wage. Many part-time employees are being replaced by kiosks and self-ordering technology as owners race to offset the higher costs.