The fast-food industry has been wringing its hands over the devastating impact on its business from California's new minimum wage law for its workers.
The ad listed a dozen chains, from Pizza Hut to Cinnabon, whose local franchisees had cut employment or raised prices, or are considering taking those steps. According to the ad, the chains were "victims of Newsom's minimum wage," which increased the minimum wage in fast food to $20 from $16, starting April 1.
Here's something you might want to know about this claim. It's baloney, sliced thick. In fact, from September through January, the period covered by the ad, fast-food employment in California has gone up, as tracked by the Bureau of Labor Statistics and the Federal Reserve. The claim that it has fallen represents a flagrant misrepresentation of government employment figures.
Something else the ad doesn't tell you is that after January, fast-food employment continued to rise. As of April, employment in the limited-service restaurant sector that includes fast-food establishments was higher by nearly 7,000 jobs than it was in April 2023, months before Newsom signed the minimum wage bill.
