Cautionary Tale? CA Loses Over 10,700 Jobs Due to $20 Minimum Wage

WA state's minimum wage went up to $16.66 in 2025, but in some cities, including Seattle, $20 is now the going rate. Actually, it is $20.76. CA implemented it statewide, and it had effects on jobs. Seattle's new rate went into effect on January 1st. 2025.

  CA estimates at least 10,700 jobs lost over the new minimum wage

According to a study performed by the Berkeley Research Group, CA has lost at least 10,700 jobs due to the hike, which went into effect in April of 2024. The bill was signed into law by Governor Gavin Newsome in September of 2023.

Even before the increase, as a precaution, businesses began to streamline and cut jobs and hours, the study shows the job losses occurred between June of 2023 and  June 2024, a 12-month period.

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Along with the job losses, average prices in fast-food restaurants and other similar food service industries went up an average of 14.5 percent.

Part of the job losses are also due to what the report said was greatly increased automation practices by these establishments. These include more automated ordering and processing kiosks.

Governor Newsome said the increase would help workers achieve a higher standard of living by making more money, but many who still have a job are now seeing their hours cut significantly.

According to Fox News, one Chef and restaurant expert, Andrew Gruel, offered this advice to fast-food owners:

"Cut your menu size, outsource a lot of kitchen labor and utilize AI for back office management."

Fox News reports the CA Fast Food Council is reportedly considering raising the wage again to $20.70 in the near future.

Some West-side legislators and advocates are suggesting WA state should consider doing the same