Two years after California Governor Gavin Newsom signed the FAST Recovery Act with cameras flashing and union leaders cheering, the law is leaving a trail of layoffs, shuttered restaurants, and angry consumers.
The measure, which took effect in 2023, mandated a $20 minimum wage for fast-food workers across the state. Newsom hailed it at the time as a “win-win-win” for employees, restaurant owners, and customers. But the numbers now show a far different reality.
According to the Employment Policies Institute (EPI), California has shed nearly 20,000 fast-food jobs since the law was signed — accounting for almost one-quarter of all fast-food job losses nationwide over the same period. The analysis draws from Bureau of Labor Statistics data, which paint a bleak picture for one of California’s largest entry-level job sectors.
The job losses are not just statistics. Two major Pizza Hut franchisees recently laid off more than 1,200 delivery drivers, citing the steep rise in labor costs. Other chains, including Mod Pizza and Foster’s Freeze, have decided to close California locations altogether. For many small-business franchisees, razor-thin margins disappeared overnight once payroll costs spiked.
