One year in, California’s fast food wage hike brings higher pay, debatable job numbers
May 2, 2025
By: Natasha Chen, CNN
One year after California implemented the Fast Food Accountability and Standards Recovery (FAST) Act, the results are mixed. The law raised fast food wages to $20 per hour and created a statewide council to set labor standards, impacting chains with 60+ locations. While workers like Edgar Recinos initially benefited from higher pay, many now report reduced hours, leaving some no better off financially. Fast food employers say they’ve cut hours and paused hiring to manage increased labor costs. Employment in California’s limited-service restaurant sector fell by over 22,600 jobs (3.1%) over the past year—more than the national trend. Economists remain divided on whether the wage hike is to blame. Critics like Christopher Thornberg argue the data contradicts earlier claims that the FAST Act had minimal economic impact.
