Controversy continues to swirl around California’s minimum wage requirements with a recent study prompting a counter study from academic circles and business owners doubling down on criticism of the rules as destructive to their industry.
While economist Christopher Thornberg’s March 2025 analysis claimed the Fast Act resulted in over 23,100 lost jobs across the industry, a new academic study is challenging those findings and suggesting the law’s impact has been minimal. Meanwhile, franchise owners report significant financial strain since the wage increase took effect.
The debate centers on California’s AB 1228, which raised the minimum wage for workers at chain restaurants with 60 or more locations nationwide to $20 per hour – $4 higher than the state’s standard minimum wage…