The real minimum wage is and always will be the same: Zero. Even the Service Employees International Union (SEIU), the union that represents, among other things, food service workers, is being forced to admit the truth of this economic principle. A study commissioned by the SEIU organization shows that California's new $20/hour minimum wage for fast-food workers raised food prices, and may have cost over 10,000 jobs.

Last week the Globe reported on a new study by the Berkeley Research Group admitting that California’s $20 minimum wage for fast food workers has led to job losses, higher food prices, and increased automation in the industry.

The BRG study found, “California’s fast-food restaurants lost 10,700 jobs between June 2023 and June 2024, making it the worst performing year outside of a recession, and the COVID-19 pandemic. Additionally, food prices at local restaurants have increased by 14.5% since the legislation was signed, nearly double the national average.

The Employment Policies Institute (EPI), which has consistently reported on the economic devastation by the $20 minimum wage for fast food workers weighs in on the study by the SEIU.

As EPI notes, the evidence is from an unexpected source: “…the same labor union that pushed for the $20 policy.”

Well, duh. Any economics student could tell you that hiking the minimum wage would result in pricing low-skilled workers out of the job market, and that low-skilled workers are generally the ones who seek fast-food jobs. Until politicians started diddling in the workplace with minimum-wage laws, fast food was one of the businesses where young people seeking employment experience could set their feet on the first one or two rungs of the economic ladder.

No longer. Now, it's price increases for customers, shutdowns, and burger bots:

Key Findings from the Berkeley Research Group study:

• 10,700 Jobs Lost: According to U.S. Bureau of Labor Statistics (BLS) Quarterly Census of Employment and Wages data, California’s limited-service restaurant lost 10,700 jobs (-1.9%) between June 2023 and June 2024—marking the steepest decline this century outside of the Great Recession (2009) and the COVID-19 pandemic (2020).
• 14.5% Increase in Food Prices: Since the legislation mandating the $20 minimum wage for fast food workers was signed in September 2023, food prices at California’s local restaurants have increased by 14.5%—nearly double the national average (8.2%).
• Technology and Automation Replacing Workers to Offset Increased Labor Costs: Restaurants have accelerated the use of ordering kiosks, AI drive-thru systems, and robotic kitchen automation, reducing available entry-level jobs and shrinking employment per location.

If they had asked me, I coulda told 'em.

See Related: The Minimum Wage: Fact vs. Fiction

The Real Minimum Wage Is Zero: Chick-fil-A Adopts Lemonade Bots

There's an argument to be made here besides the economic stupidity of it all. Namely: Why is any level of government intervening in any voluntary economic agreement between employer and employee? If a high-school kid is willing to work flipping burgers for $8 an hour, why should the government be involved? Forget that "living wage" horse squeeze; the minimum wage shouldn't be something one raises a family on, it's what a teenager takes to get started in the wonderful world of work. If someone is 35 years old with three kids and they are working at a minimum wage job, then they really need to take a good hard look at their life.

Now, we have another indicator of just how damaging minimum wage laws can be. The SEIU commissioned this study. Will the results be reflected in any policy change for the union?

Somehow, that seems doubtful. They'll go on shouting for increases in the minimum wage, as many union contracts are tied to that figure, and increasing union wages ensures that the union workers will go on paying dues. Entry-level workers can go lump it; the SEIU has its own pockets to worry about.