California raised its minimum wage for fast food workers to $20 per hour starting April 1, 2024. According to several studies, this policy has led to significant job losses in the fast food sector, with estimates ranging from about 10,700 to 18,000 fewer jobs within a year, representing roughly a 3% decline relative to other states where fast food employment grew slightly[1][2][3]. The National Bureau of Economic Research (NBER) found a 3.2% drop, and other data show reductions in employee hours and a shift towards automation, such as kiosks replacing cashiers, contributing to fewer opportunities for lower-skilled workers[1][2].

Additionally, fast food menu prices increased significantly in California by about 14.5%, nearly double the national average, and many operators cut employee benefits to offset higher labor costs[1]. This wage hike has thus been linked to both fewer available jobs and higher food prices[1].

In contrast, a UC Berkeley study disputes these findings, concluding that the wage increase led to an 18% pay boost for workers but did not cause significant job losses or major price hikes[5][8]. This shows there are conflicting conclusions among studies, though the job loss findings have been supported by multiple research groups including NBER and Pepperdine University.

In summary, while the pay increase raised wages substantially, the predominant evidence suggests it also contributed to notable fast-food job reductions and higher prices in California within the first year of the $20 minimum wage policy[1][2][3]. However, the debate continues with some academic studies finding little to no negative employment effects[5][8].