---
title: "$20 an Hour Results in Job Cuts"
url: https://burnaze.com/article/0e029658-b8a3-4bdb-a818-aa5fa20aa928
source: "Franchising.com"
original_url: https://www.franchising.com/articles/20_an_hour_results_in_job_cuts.html
author: "M. Scott Morris"
category: "Restaurants"
industry: "Restaurants"
published: 2024-08-05T09:00:00.000Z
modified: 2026-10-31T18:42:52.961Z
image: https://imgs.franchising.com/art/articles/8778_plate.jpg
---

# $20 an Hour Results in Job Cuts

**TL;DR:** A survey of California fast-food restaurants found that a $20-an-hour minimum wage has resulted in job cuts and shuttered locations, with 89% of respondents reducing employee hours. Many respondents have resorted to price hikes and/or laying off staff due to the minimum wage law.

*By M. Scott Morris, originally published in Franchising.com on 2024-08-05. [Read the original](https://www.franchising.com/articles/20_an_hour_results_in_job_cuts.html).*

## Story

A new survey of California fast-food restaurants has found that a $20-an-hour minimum wage has resulted in cut jobs and shuttered locations. The Employment Policies Institute, which conducted the survey, reported that the $20 minimum wage will limit future growth in California. According to the report, 89% of the 200 restaurant owners surveyed have reduced employee hours.

Many respondents have resorted to price hikes and/or laying off staff. Respondents said they expected these consequences to continue into 2025. Here are key findings from the survey: A majority of those surveyed say they have already raised menu prices (98%), reduced employee hours (89%), have limited employee shift pick-up or overtime opportunities (73%), and reduced staff or consolidated positions (70%) as a result of the minimum wage law.

A majority of restaurant owners say that in the next year they will have to raise menu prices (93%), reduce employee hours (87%), reduce staff or consolidate positions (74%), and limit employee shift pick-up or overtime opportunities (71%). 89% of owners say they are less likely to expand inside California (somewhat less likely, 16%; significantly less likely, 73%). A majority (74%) say there is an increase in the likelihood of shutting their restaurants down (somewhat increase, 38%; significantly increase, 36%).

A majority of respondents (67%) say the minimum wage law will cost their restaurant at least $100,000 per location every year. One in four say it will cost more than $200,000 per location every year. To read the full report, click here.

## Entities

- Franchising.com (publication)
- Restaurants (sector)
- restaurant industry (topic)
- California (location)
- M. Scott Morris (person)
- minimum wage (topic)
- job cuts (topic)
- price hikes (topic)

---
Originally reported by M. Scott Morris, Franchising.com (https://www.franchising.com/articles/20_an_hour_results_in_job_cuts.html). Summarized by Burnaze (https://burnaze.com/article/0e029658-b8a3-4bdb-a818-aa5fa20aa928).