Business
Study Confirms California’s $20/Hour Fast Food Wage Raises Pay Without Job Losses
A new study from Harvard Kennedy School and the University of California, San Francisco, says that California’s $20-per-hour minimum wage for fast food workers has led to significant pay increases without causing reductions in jobs, work hours, or benefits. The findings, based on data collected since the wage law took effect in April 2024, show that fast food workers across the state experienced hourly wage increases of at least $2.50, with the number of workers earning less than $20 per hour dropping by 60 percentage points.

By Joe W. Bowers, California Black Media
A new study from Harvard Kennedy School and the University of California, San Francisco, says that California’s $20-per-hour minimum wage for fast food workers has led to significant pay increases without causing reductions in jobs, work hours, or benefits. The findings, based on data collected since the wage law took effect in April 2024, show that fast food workers across the state experienced hourly wage increases of at least $2.50, with the number of workers earning less than $20 per hour dropping by 60 percentage points.
“We find no evidence that wage increases had unintended consequences on staffing, scheduling, or wage theft,” the study reports. The researchers found that work hours were stable on a week-to-week basis, and there was no reduction in employee benefits, such as health insurance or paid time off. Instead, the fast-food industry added 11,000 jobs between April and July 2024, bringing the total number of fast-food jobs in the state to 750,500 — the highest level on record.
Assembly Bill 1228, authored by Assemblymember Chris Holden (D-Pasadena), not only raised the minimum wage to $20 per hour but also established the Fast-Food Council to oversee wages, working conditions, and health and safety standards for fast food workers. During the signing of AB 1228, Holden stated, “We did not just raise the minimum wage to $20 an hour for fast food workers. We helped a father or mother feed their children, we helped a student put gas in their car, and helped a grandparent get their grandchild a birthday gift”
The study contradicts claims from the fast-food industry, which had expressed concerns that the wage increase would mean layoffs, a cut in service hours, and an increase in menu prices. However, the study found no significant changes in employment levels, work schedules, or benefits. According to the report some challenges, like underemployment and unpredictable scheduling, remain but existed prior to the wage hike.
Gov. Gavin Newsom has previously voiced strong support for the wage increase, saying, “We’re ensuring that workers in fast food — the backbone of many families — can actually afford to live in the communities where they work.”
The study’s findings align with earlier research from UC Berkeley’s Institute for Research on Labor and Employment, which showed no significant reduction in employment and only a modest increase in menu prices.
The study’s results highlight that California’s approach to raising the minimum wage has delivered higher pay for workers without the negative effects some had predicted, providing economic stability for thousands of fast-food workers across the state.
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Oakland Post: Week of June 25 – July 1, 2025
The printed Weekly Edition of the Oakland Post: Week of June 25 – July 1, 2025

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Oakland Post: Week of June 18 – 24, 2025
The printed Weekly Edition of the Oakland Post: Week of June 18 – 24, 2025

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OPINION: California’s Legislature Has the Wrong Prescription for the Affordability Crisis — Gov. Newsom’s Plan Hits the Mark
Last month, Gov. Newsom included measures in his budget that would encourage greater transparency, accountability, and affordability across the prescription drug supply chain. His plan would deliver real relief to struggling Californians. It would also help expose the hidden markups and practices by big drug companies that push the prices of prescription drugs higher and higher. The legislature should follow the Governor’s lead and embrace sensible, fair regulations that will not raise the cost of medications.

By Rev. Dr. Lawrence E. VanHook
As a pastor and East Bay resident, I see firsthand how my community struggles with the rising cost of everyday living. A fellow pastor in Oakland recently told me he cuts his pills in half to make them last longer because of the crushing costs of drugs.
Meanwhile, community members are contending with skyrocketing grocery prices and a lack of affordable healthcare options, while businesses are being forced to close their doors.
Our community is hurting. Things have to change.
The most pressing issue that demands our leaders’ attention is rising healthcare costs, and particularly the rising cost of medications. Annual prescription drug costs in California have spiked by nearly 50% since 2018, from $9.1 billion to $13.6 billion.
Last month, Gov. Newsom included measures in his budget that would encourage greater transparency, accountability, and affordability across the prescription drug supply chain. His plan would deliver real relief to struggling Californians. It would also help expose the hidden markups and practices by big drug companies that push the prices of prescription drugs higher and higher. The legislature should follow the Governor’s lead and embrace sensible, fair regulations that will not raise the cost of medications.
Some lawmakers, however, have advanced legislation that would drive up healthcare costs and set communities like mine back further.
I’m particularly concerned with Senate Bill (SB) 41, sponsored by Sen. Scott Wiener (D-San Francisco), a carbon copy of a 2024 bill that I strongly opposed and Gov. Newsom rightly vetoed. This bill would impose significant healthcare costs on patients, small businesses, and working families, while allowing big drug companies to increase their profits.
SB 41 would impose a new $10.05 pharmacy fee for every prescription filled in California. This new fee, which would apply to millions of Californians, is roughly five times higher than the current average of $2.
For example, a Bay Area family with five monthly prescriptions would be forced to shoulder about $500 more in annual health costs. If a small business covers 25 employees, each with four prescription fills per month (the national average), that would add nearly $10,000 per year in health care costs.
This bill would also restrict how health plan sponsors — like employers, unions, state plans, Medicare, and Medicaid — partner with pharmacy benefit managers (PBMs) to negotiate against big drug companies and deliver the lowest possible costs for employees and members. By mandating a flat fee for pharmacy benefit services, this misguided legislation would undercut your health plan’s ability to drive down costs while handing more profits to pharmaceutical manufacturers.
This bill would also endanger patients by eliminating safety requirements for pharmacies that dispense complex and costly specialty medications. Additionally, it would restrict home delivery for prescriptions, a convenient and affordable service that many families rely on.
Instead of repeating the same tired plan laid out in the big pharma-backed playbook, lawmakers should embrace Newsom’s transparency-first approach and prioritize our communities.
Let’s urge our state legislators to reject policies like SB 41 that would make a difficult situation even worse for communities like ours.
About the Author
Rev. Dr. VanHook is the founder and pastor of The Community Church in Oakland and the founder of The Charis House, a re-entry facility for men recovering from alcohol and drug abuse.
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