Business
Column: The latest info on California's $20 minimum wage for fast food workers — higher pay, no job losses and minimal price hikes
Which of California’s economic initiatives droves conservatives batty the most? No question: It’s the state’s $20 minimum wage for fast food workers, which went into effect April 1.
For months before the wage increase, conservative pundits and economists filled the airwaves and newspaper columns with predictions that it would produce an employment bloodbath at fast food restaurants.
Some went further, purporting to find actual evidence of huge job losses. The Wall Street Journal claimed to have discovered losses of 10,000 jobs between September 2023 and January 2024, even before the new wage went into effect. The estimate was duly parroted by the conservative Hoover Institution.
What’s good for workers is good for business, and as California’s fast food industry continues booming every single month our workers are finally getting the pay they deserve.
— Gov. Gavin Newsom on the state’s $20 minimum wage for fast food workers
Two new analyses of the actual wage and price impacts of the $20-per-hour minimum have appeared this month. They employ slightly different statistics, but their conclusions are the same: There have been no job losses in fast food resulting from the increase. By some measures, employment has increased.
The first analysis to appear came from the Institute for Research on Labor and Employment at UC Berkeley. It found no measurable job losses, significant wage gains (as one might expect from raising the minimum wage to $20 from an average of less than $17), and modest price increases at the cash register averaging about 3.7% — far lower than the fast food franchise lobby claimed were necessary.
The second comes from a joint project of the Harvard Kennedy School and UC San Francisco. Not only did that survey find no job losses, but it also debunked claims or conjectures from minimum-wage critics that the increase would show up as reductions in hours or fringe benefits.
Nothing of the kind has surfaced in the months just before or just after the new law, according to the Harvard-UCSF survey’s authors, Daniel Schneider of Harvard and Kristen Harknett of UCSF.
“In response to wage increases,” they wrote, “employers could have looked to cut costs by reducing fringe benefits such as health or dental insurance, paid sick time, or retirement benefits. We find no evidence of reductions.”
These results are important for several reasons. One is that the fast-food minimum wage increase is one of the sharpest ever, and the resulting wage the highest in the country (with a few minor exceptions).
It’s also one of the most tightly targeted, applying to California stores of fast food chains with more than 60 nationwide locations. The sector employs about 750,000 workers in the state, 90% of whom were paid less than $20 an hour — on average, slightly less than $17 — before the new wage went into effect.
“This is a big deal because of how many workers are getting raises,” UC’s veteran labor expert Michael Reich, the lead author of the Berkeley study, told me. The estimated average 18% raise for affected workers means that some will be able to afford a better apartment or a used car. Employers get benefits too: “The minimum wage kills a lot of vacancies and improves the supply of labor coming to those restaurants.” That means less worker turnover, which is a bothersome expense.
The fast food raise has been presented as a signature achievement by California’s Democratic governor, Gavin Newsom, who depicts it as emblematic of the state’s progressive labor policies. “What’s good for workers is good for business, and as California’s fast food industry continues booming every single month our workers are finally getting the pay they deserve,” Newsom said in August.
Fast food employment in California rose after April’s minimum wage increase (solid red line), often faster than in the rest of the country.
(UC Berkeley)
California has been a leader in raising minimum wages. The overall state minimum wage this year is $16 an hour and is scheduled to rise to $16.50 on Jan. 1; that’s the highest state-level minimum and the highest except for the District of Columbia, where it’s $17.50. (Certain localities in some states have higher minimums.) The California minimum wage for certain healthcare workers will rise to between $18 and $23 on Wednesday.
The issue is also timely, for California voters will be asked on election day to vote on a minimum wage increase for employees at all but the smallest businesses to $17 immediately and $18 on Jan. 1.
All that has made the fast-food minimum a favorite target for employers, their lobbyists and some right-of-center economic commentators.
The minimum wage issue occupies a peculiar place in economic analysis. Many economists and commentators judge it by intuition — if you raise the price of something, such as the price of fast food labor, conventional economics say you’ll get less of it. Hence, higher minimum wage, fewer jobs.
But it’s also among the most heavily studied of all economic phenomena, with the overwhelming majority of studies finding little or no employment effect from a higher minimum. But none examined the effects of a minimum higher than $15.
That left the door open for critics of the California minimum to claim that this higher minimum was destined to wreak havoc on fast food employment. Some jumped the gun by finding job losses even before the law went into effect — ostensibly because employers were cutting jobs in anticipation of higher costs.
As I reported in June, the California Business and Industrial Alliance placed a full-page ad in USA Today, citing the Wall Street Journal’s figure of 10,000 fast-food jobs lost during the fall and early winter and describing 12 restaurants or chains as “victims of Newsom’s minimum wage.”
This was “baloney, sliced thick,” I wrote. Some of the chains listed were victims of other economic factors, such as competition, or financial manhandling by their private equity owners.
The figure of 10,000 job losses proved to be a statistical error: The Wall Street Journal used non-seasonally adjusted job figures, so it missed the fact that fast-food employment always falls in the September-January period, so the looming minimum wage played no role.
That was something of a curveball for UCLA economics professor Lee Ohanian, who had cited the Journal’s figure in two columns published by the Hoover Institution, where he is a senior fellow, writing that the pace and timing of the employment decline made it “tempting to conclude that many of those lost fast-food jobs resulted from the higher labor costs employers would need to pay” when the new law kicked in.
Ohanian told me in June that he hadn’t realized that the figures weren’t seasonally adjusted, and that he would query the Journal about the issue in anticipation of writing about it again. He told me more recently that he did write to the Journal but didn’t receive a reply, and that he hasn’t revisited the issue thus far.
So what do we know now about the $20 fast food minimum?
Government labor statistics haven’t shown an employment decrease in the fast-food category leading up to the April 1 date or in most of the months since then. The Berkeley researchers, led by Reich, found that fast-food employment rose almost steady this year from January through August, when it exceeded 750,000 for the first time.
According to the Bureau of Labor Statistics, employment in the sector during that period has run ahead of last year’s monthly figures in every month except June. From April 2023 through August this year, the BLS says, California fast food employment rose by about 3,200 jobs on a seasonally adjusted basis.
Reich’s team questioned reports of sizable price increases by restaurants aiming to pass their labor cost increases onto customers. The Wall Street Journal, for example, quoted one restaurant owner saying he had raised menu prices by 10%, and a McDonald’s franchisee fretting about losing his customer base if he had to raise the price of a Happy Meal to $20. This was nothing but a flight of fancy: The price of a Happy Meal in California ranges from $4 to $8 today, depending on its content and size.
Based on their examination of menus from nearly 1,600 California restaurants, the Berkeley researchers calculated the average price increase to be about 3.7% — “or about 15 cents on a $4 hamburger.” That was less than the 4.8% average increase imposed on fast-food customers from April 2023 to April 2024. Their math suggests that fast food restaurants passed about 62% of their labor cost increase in April to customers; the rest was taken out of profits.
None of this is likely to be the last word on the minimum wage issue. Future increases for fast food workers will be in the hands of an advisory wage council and subject to legislative oversight. It’s still early in the post-$20 era; wage and price effects may take many more months, even a year, to emerge, though over time the hourly minimums for other employment sectors may move higher, making the fast food wage less of an outlier.
Employment figures, moreover, can be hard to validate. Several different statistical models are in use by states and the federal government. UCLA’s Ohanian reminded me that the quarterly census of employment and wages of the Bureau of Labor Statistics, which covers about 95% of businesses, is current only through the end of March. The next release, covering the second quarter of 2024, won’t be published until December; it’s calibrated with the bureau’s other estimates only once a year.
Don’t expect anything published then to quash the debate over California’s fast food labor policy. The evil of the minimum wage is a favorite chew toy in conservative politics.
But the bottom line is that workers in the California fast-food industry are better off today than they were six months ago. Who has a problem with that?
Business
In a first for the country, voters in Monterey Park ban data centers
Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.
As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.
Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.
Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.
That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.
“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”
The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.
The Data Center Coalition, an industry trade group, expressed disappointment in the vote.
“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.
“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”
SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.
The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.
City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.
There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.
“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.
Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.
California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.
That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.
In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.
Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
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