California advocates insist on raising minimum wage to $30 despite research showing 'negative outcomes'

Advocacy groups in California are pushing for a $30 minimum wage in Oakland despite research suggesting the policy showed "negative outcomes" across the Golden State.

It was reported on March 30 that One Fair Wage is launching a ballot initiative in Alameda County and the city of Oakland as local officials consider an increase in their minimum wage to $30 an hour. The initiative — which would appear on the Nov. 3 ballot this year — plans to increase the minimum wage in both the city and county.

One Fair Wage is part of a coalition of community organizations that spoke at a news conference in Oakland on Mar. 19 launching a campaign to raise the minimum hourly wage to $30 for companies in Oakland and Alameda County.

"Working people today face an affordability crisis that's completely out of control, all while billionaires and massive corporations have been raking in record profits," said Mike Miller, director of the United Auto Workers (UAW) Region 6, which represents the western region of the country.

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Large businesses with over 100 employees that make $1 billion annually would have until 2030 to raise the minimum wage to $30 an hour. 

Smaller businesses are given more time. Businesses employing between 25 and 100 employees would have until 2035 to increase the minimum wage to $30. Businesses with fewer than 25 employees would have until 2037 to phase in the minimum wage increase to $30. 

"Every time there has been a downturn or a serious challenge to the economy, in the end, we raise wages as a stimulus," said Saru Jayaraman, president of One Fair Wage at Center Square. "It’s basically a stimulus in the hands of working people, who spend a much bigger percentage of their income than higher-income people because they have to. It’s survival."

California gives petitioners 180 days from the date the initiative is filed to collect enough signatures to qualify for the ballot.

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But One Fair Wage and the other organizations' efforts come after research showed minimum wage mandates have adverse outcomes.

Researchers found that California's minimum wage hike for fast-food workers led to "negative outcomes" such as automation and reduced work hours, according to a study published in March. Stephen Owen of University of California Santa Cruz cited higher menu prices, reduced hours, lost benefits, and accelerating automation.

The minimum wage for workers was $16 before the $20 minimum wage for fast-food workers became law in April 2024. Gov. Gavin Newsom said in September 2023 the increase would help workers earn more as the cost-of-living rises. 

Another study by the Berkeley Research Group discovered there were 10,700 jobs lost between June 2023 and June 2024 in the fast food sector, according to Bureau of Labor Statistics data. The prices at the establishments soared by 14.5% after the new minimum wage became law.

Despite the findings, California officials doubled down on minimum wage laws.

A phased-in minimum wage hike in Los Angeles mandated up to $30 per hour for airport and hotel workers. The law was signed into law last year by Mayor Karen Bass, mandating that their hourly wage must be raised by $2.50 each year until they reach $30 in 2028. 

The Hotel Association of Los Angeles (HALA) recently commissioned a study that found hotels have eliminated or expect to eliminate 6% of positions, roughly 650 jobs, since the Hotel Worker Minimum Wage Ordinance took effect in September.

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One Fair Wage’s efforts go beyond Oakland and into the whole state of California and across the country.

"We're fighting to raise the minimum wage and help service workers all over California improve their working conditions," the group said on its website. "The cost of living is rising, but the minimum wage isn’t keeping up. It’s time for a living wage for all people who work in California!" 

Starting in 2024, One Fair Wage advanced ballot measures to raise wages and "end various subminimum wages" in Michigan, Ohio, Arizona, and Massachusetts. Including California, the group wants to raise the minimum wage in Illinois, New York, Maryland, Connecticut, Rhode Island, Hawaii, and Puerto Rico.

According to its website, "One Fair Wage is moving legislation and ballot measures in 25 states to raise wages and end subminimum wages for millions of workers — and mobilize millions to vote in the process — by the United States’ 250th Anniversary (2026)."

Newsom's office did not respond to Fox News Digital's request for comment. Owen and One Fair Wage also did not respond to Fox News Digital's request for comment.