California’s New Fast Food Minimum Wage in Context

On April 1st, California increased the minimum wage to $20 per hour for fast-food workers, making it the highest statewide minimum wage in the country.

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While there have been numerous news stories about layoffs stemming from the new minimum wage, the lucky workers who keep their jobs will see a large pay increase.

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To put the new fast-food minimum wage increase in perspective, researchers at TruckInfo.net analyzed data from the Bureau of Labor Statistics, the Department of Labor, and the US Census Bureau. They found the following.

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Fast-food workers in CA will now make $6,430 more per year on average

At the state level, the typical fast-food worker will now make $6,430 more than before the minimum wage hike, representing an 18% increase. However, workers in some metros will see an even larger increase on average.

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Fast-food workers in California now make significantly more than fast-food workers in other states

Fast-food workers in California will now make up to $20k more than fast-food workers in other states. Even when accounting for cost-of-living differences, fast-food workers in California will still earn up to $12k more than their counterparts in other states.

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CA fast-food workers now have the highest state-level minimum wage in the country

California’s fast-food workers now have the highest state-level minimum wage by nearly $4. For context, the minimum wage in California for most workers is just $16 and in New York, $15.

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Even most city-level minimum wages, typically higher due to the increased cost of living, are lower than the new statewide minimum wage for fast-food workers in California.

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Cities with the highest minimum wage

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Fast-food workers now make more than high school graduates in California

While most fast-food roles do not require a high school diploma, workers lucky to secure a position will now make more than their high school graduate counterparts.

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Full Data

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Data Source

Data on fast-food workers was sourced from the Bureau of Labor Statistics while data on income by education level was sourced from the US Census Bureau. Cost-of-living data was sourced from the Bureau of Economic Analysis and state-level minimum wage data from the Department of Labor. City-level minimum wage data was sourced manually.