California’s $20 fast-food wage law backfires

California’s $20 fast-food wage law backfires


Gov. Gavin Newsom (D-CA) was all smiles two years ago when he signed the FAST Recovery Act, creating a $20 minimum wage for fast-food workers in his state.

He called the legislation a win-win-win that would benefit restaurant owners, their employees, and customers alike. Fast forward two years, and all those wins he touted are turning into big losses, according to the Employment Policies Institute.

However, in the two years since the FAST Recovery Act was signed, restaurants have been forced to cut staff, raise menu prices, and turn to automation, EPI said.

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California made national headlines when two large Pizza Hut franchises laid off more than 1,200 in-house delivery drivers to cut costs, while others, such as Mod Pizza and Foster’s Freeze, decided to close up shop entirely.

“Newsom’s

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