Newsom's Office Disputes Findings on Proposed $20 Minimum Wage for Fast Food Workers

The California Governor’s Office is contesting the results of a July 2025 analysis released by the National Bureau of Economic Research (NBER). The report claims that California's 2024 hike in the minimum wage for fast food employees to $20 has led to a loss of 18,000 jobs. Tara Gallegos, deputy director of communications for Gov. Newsom, argued against the study, stating it originates from the Hoover Institution, which she accused of disseminating misleading information regarding California’s wage increases. In September 2023, the California Assembly passed Assembly Bill (AB) 1228, establishing the "Fast Food Council," which governs wage adjustments. This bill, influenced by former Assemblymember Chris Holden, was enacted on April 1, 2024. NBER researcher Jonathan Meer defended their methodology, stating the unexpected magnitude of the wage increase warranted their study. Conversely, a report from UC Berkeley found minimal employment impact and wage increases of 8-9%, underscoring ongoing debates among researchers and the lived experiences of fast food workers.

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