Newsom’s affordability minimum wage raised prices and cost jobs

Published March 23, 2026 5:00am ET



A key component of New York City Mayor Zohran Mamdani’s plan to make the city more affordable for working-class New Yorkers is his promise to raise the minimum wage to $30 by 2030. Before the city council and state legislature vote on his proposal, they should read a new report on the economic impact inflicted on fast food workers by California Gov. Gavin Newsom’s $20 minimum wage. Confounding Newsom’s promises, the law has led to higher prices for diners and reduced hours for employees, lowered benefits, and increased automation.

When Newsom signed the Fast Food Accountability and Standards Act in 2023, he said the legislation showed that “California is committed to ensuring that the men and women who have helped build our world-class economy are able to share in the state’s prosperity.” The law, which was not formally implemented until April 2024, raised the minimum wage for fast food workers by 25%, to $20, and created a Fast Food Council, stacked with union yes-men, empowered to raise fast food worker pay even higher each year.

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