The logos of McDonald's and Burger King (Soeren Stache/picture alliance via Getty Images)
"Californians are bearing the cost of the minimum wage increase through fewer available jobs and higher food cost," it added. The study also debunked notions that the minimum-wage legislation created jobs, according to the California Globe.
The study noted that the authors were "retained" by Save Local Restaurants but said the research was conducted independently.
Chef Andrew Gruel, a California-based restaurateur, told Fox News Digital he saw early on that there could be negative consequences for the service industry.
"I railed about this months ago," he said, adding that while the early economic effects were being touted, he suggested there would be losses.
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A fast-food drive-thru (CNW Group/Restaurant Brands International Inc.)
The minimum wage for workers was $16 before the $20 minimum wage for fast-food workers became law in April 2024. Gov. Gavin Newsom said in September 2023 the increase would help workers earn more as the cost-of-living rises.
"Fast food workers in CA will now be paid the highest minimum wage of any state in the country. I just signed a bill that will ensure these workers receive the fair pay they deserve," he tweeted at the time.
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However, the report also cautioned that it may also result in people getting paid less overall and "accelerate automation."
"If large enough, the combination of job eliminations and reductions could leave workers earning less income as a result of (the) $20 minimum wage," the report stated.
"For example, even if no jobs are eliminated (a dubious assumption given the BLS data discussed above), a 20% reduction in hours worked with no overtime increases would erase the financial gains from the 25% hourly wage increase, leaving workers with the same or even less total income," it continued.
The California Fast Food Council may consider increasing the minimum wage to $20.70, according to Restaurant Business Magazine.
Cameron Arcand is a politics writer at Fox News Digital in Washington D.C. Story tips can be sent to Cameron.Arcand@Fox.com and on Twitter: @cameron_arcand
https://www.foxnews.com/politics/new-study-reveals-blue-states-fast-food-wage-hike-jeopardized-thousands-jobs