It’s no secret that California’s fast food industry has taken a hit due to the recent $20 minimum wage law. National news headlines reveal restaurants have had to lay off employees or reduce their hours and raise menu prices to stay in operation. An EPI survey indicates these changes are here to stay if the law continues.
Federal jobs data has shown California’s fast food industry has been hemorrhaging jobs for months – but how does the Golden State stack up to its Western neighbors?
A look at the data for Oregon and Nevada, the only West Coast states for which fast food industry-level data was available, show the fast food jobs loss trend is not ailing other states, and is more likely related to the aggressive $20 wage hike policy (atop California’s already exhaustive set of labor regulations).
Overall, Oregon and Nevada have seen increased fast food employment by 1.7% and 3.2%, respectively, since January. California has seen a net loss of -0.9% of fast food employment over the same period.
As California approaches the end of the year and activists are pushing for even higher increases to the current $20 minimum wage law, lawmakers should be wary of the toll it is already taking on the Golden State.