At One Year, California’s Fast-Food Minimum Wage Hike has Reduced Jobs, New Pepperdine White Paper Reveals
April 1, 2025
By: Pepperdine University
A new white paper from Pepperdine School of Public Policy and Beacon Economics argues that California’s Fast Act (AB 1228) has resulted in substantial job losses in the state’s fast-food industry. Titled “Jumping the Gun on the Fast Act,” the report analyzes revised state employment data, revealing a 3.2% drop, over 23,100 jobs, in California's limited-service restaurant sector over the past year, in contrast to modest national growth. The authors contend that earlier reports underestimated the economic fallout, calling prior optimism premature. Christopher Thornberg of Beacon Economics warns that aggressive wage hikes are having tangible negative effects, particularly for entry-level workers. The paper also raises concerns about long-term risks to business sustainability and employee benefits.
