Fast Food, Poverty Wages: The Public Cost of Low-Wage Jobs in the Fast-Food Industry

Press Coverage

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We Thought These Things Would Make Society Work Better in the 2010s. What Happened?
Triple Pundit | October 24, 2023

Coalition gathers signatures to stall California’s fast-food labor law
East Bay Times | December 6, 2022

Fast-food workers to stage protest over opposition to new labor law
Orange County Register | November 14, 2022

Restaurant employees are essential workers yet often denied basic needs
Daily Californian | September 23, 2021

What minimum wage increases did to McDonald’s restaurants — and their employees
MarketWatch | January 28, 2021

Government study shows taxpayers are subsidizing “starvation wages” at McDonald’s, Walmart
Salon | December 12, 2020

Millions of U.S Workers for Walmart, McDonald’s and Other Corporate Giants Rely on Food Stamps and Medicaid
In These Times | November 20, 2020

Walmart and McDonald’s have the most workers on food stamps and Medicaid, new study shows
Washington Post | November 18, 2020

Taco Bell will try paying some managers $100,000 a year — but In-N-Out Burger already pays managers $160,000
MarketWatch | January 9, 2020

Burger King Wants You to ‘Feel Your Way.’ But What About Its Own Employees?
Eater | May 23, 2019

Missoula city, county push to increase wages, but will the private sector follow?
Missoula Current | February 18, 2019

Sanders, Khanna Introduce Bill to Get Billionaires Off Welfare
Bernie Sanders U.S. Senator for Vermont Newsroom | September 5, 2018

Bernie Sanders’s BEZOS bill takes aim at how Amazon pays workers
Vox | September 5, 2018

How Andy Puzder’s fast-food industry sticks taxpayers with the cost of supporting its workers
Los Angeles Times | January 23, 2017

Fight for $15 to join Chicago Teachers Union’s April 1 strike
Chicago Tribune | March 25, 2016

Gov. Andrew Cuomo: NY workers deserve a $15 minimum wage (Commentary)
Syracuse.com | March 7, 2016

$15 minimum wage doomsayers wrong
Orange County Register | October 2, 2015

Automats: The Utopian Future or a Return to a Dystopian Past?
Eater | September 16, 2015

Fast-Food Workers Have Won the Wage Fight in New York
TakePart | September 11, 2015

Orange County Register Echoes Right-Wing Media Myths To Attack $15 Minimum Wage In California
Media Matters for America | September 9, 2015

Don’t blame your expensive lunch on minimum wage increases
The Guardian | July 14, 2015

The List of the Fight for $15’s Victories—Tangible and Intangible—Is Getting Longer
In These Times | June 15, 2015

‘Fight For $15’ workers create recipe for change at convention
Al Jazeera America | June 6, 2015

Forget First Quarter Earnings, Wal-Mart Just Made a Long-Term, Business-Sustaining Move
TheStreet | May 21, 2015

Ending the Minimum-Wage Subsidy
Bloomberg View | May 20, 2015

What James Franco gets wrong about working for McDonald’s
Washington Post Wonkblog | May 7, 2015

Dem leaders want Senate food workers to make $15 an hour
The Hill | April 28, 2015

The Makings of a Fast-Food-Worker Movement
TakePart | April 17, 2015

‘High Public Cost Of Low Wages’: Taxpayers Paying Billions In Assistance To Working Families
Inquisitr | April 14, 2015

Five myths about fast-food work
Washington Post | April 10, 2015

McDonald’s Minimum Raise
New York Times | April 3, 2015

Should McDonald’s Follow Wal-Mart’s Lead and Hike Wages?
Motley Fool | March 26, 2015

Could a $15 minimum wage make sense for Oregon?
Christian Science Monitor | March 9, 2015

Making a Living Wage in Fast Food in Denmark
The Daily Meal | January 29, 2015

Two years later, fast food workers’ fight for $15 and a union still going strong
Richmond Confidential | December 31, 2014

The False Dichotomy of Wages vs. Profits
strategy+business blog | December 22, 2014

Fast Food Workers, Joined By Other Low Wage Workers, Strike in Record 190 Cities
In These Times | December 4, 2014

Fast-Food Workers Strike in Oakland, Again
East Bay Express | December 4, 2014

Fast Food in Denmark Serves Something Atypical: Living Wages
New York Times | October 27, 2014

Is the Fast-Food Industry Driving Income Inequality in America?
Business Cheat Sheet | October 15, 2014

Rich and on the dole
New York Daily News | October 14, 2014

Four takeaways from Joe Biden’s Las Vegas visit
Las Vegas Sun | October 6, 2014

Marriott to hotel guests: Please pay our maids for us
Fortune | September 16, 2014

Dignity: Fast-food workers and a new form of labor activism
The New Yorker | September 15, 2014

Study: Fast Food Workers More Likely To Be On Publicly Subsidized Healthcare
Capital Public Radio | September 4, 2014

Union Workers Push for Minimum Wage Hike
ABC7 News | September 1, 2014

A university president gave up $90,000 to give his minimum wage workers a raise
Vox | August 11, 2014

UFCW study urges legislative support for unions
Supermarket News | June 9, 2014

Study: Grocery workers struggle to pay for food
San Diego Union-Tribune | June 8, 2014

Grocery workers in California see wages shrink
San Francisco Chronicle | June 8, 2014

Opinion: Why fast food workers need be be paid more
CNN | May 15, 2014

The fast food strike: the hard facts behind the Big Mac attack
PBS Newshour | May 15, 2014

Fast food workers to strike again
Boston Globe | May 14, 2014

The Blame-Game, Double Standards & Fast Food: A Tale of the United States Economy
The London Economic | May 13, 2014

Wall Street Journal Promotes Falsehood That Higher Wages Push Workers Onto Government “Dole”
Media Matters for America | May 6, 2014

Fast Food Pulls a Fast One
Moyers & Company | April 29, 2014

How taxpayers subsidize millions in restaurant CEO pay
CBS MoneyWatch | April 22, 2014

Fast-food CEOs make 1,000 times more than their workers
CBS MoneyWatch | April 22, 2014

How high should minimum wage go?
Cincinnati Enquirer | April 7, 2014

Thumbs-up for $15-an-hour minimum wage in new S.F. poll
San Francisco Chronicle | March 16, 2014

Report: Minimum wage hike would cut food stamp spending by $4.6 billion a year
Washington Post | March 4, 2014

Hey, Washington! The Pay Is Too Damn Low: The Minimum-Wage War
Rolling Stone | February 27, 2014

For $1 per Big Mac, a truly livable salary for millions
Boston Globe | February 18, 2014

The Case for a Higher Minimum Wage
New York Times | February 8, 2014

Why McDonald’s Should Focus on Less Beef and Higher Wages
The Guardian | January 29, 2014

Bill O’Reilly Blesses Minimum Wage Hike
San Francisco Chronicle | January 15, 2014

Raise Minimum Wages, Say Some on the Right
San Francisco Chronicle | January 12, 2014

Audio: McDonald’s Tells Full-Time Employee to Apply for Welfare Benefits
Moyers & Company | October 24, 2013

Fast-Food Giants Make Billions while their Workers use Billions in Welfare Benefits
Alternet | October 15, 2013

McDonald’s on employee resources site: Not lovin’ it
CNN | December 26, 2013

The Minimum Wage and McDonald’s Welfare
Bloomberg | December 17, 2013

Is service work today worse than being a household servant?
Al Jazeera America | December 10, 2013

Fox Piles On Big Business’ Attempt To Smear Fast Food Protesters As “Rent-A-Mobs”
Media Matters for America | December 10, 2013

Editorial: Work and Rewards
New York Times | December 6, 2013

Large number of low-wage workers rely on public assistance programs
89.3 KPCC Southern California Public Radio, Airtalk | December 5, 2013

Want to Cut Food Stamp Spending? Raise the Minimum Wage
Huffington Post | December 3, 2013

Life on $7.25 an Hour: Older Workers Are Increasingly Entering Fast-Food Industry
New York Times | November 28, 2013

Walmart Employees Organize Food Drive… for Other Walmart Employees
Yahoo Finance | November 18, 2013

Commentary: When fast food corporations hold down wages, it affects all of us
by Ken Jacobs | Sacramento Bee | November 13, 2013

Taxpayers pay high cost for low fast-food wages, lawmakers are told
Los Angeles Times | November 13, 2013

Report: Fast Food Bad for California Taxpayers
KCRA 3 News, Sacramento | November 13, 2013

California Legislature Holds Joint Fast Food Wages Hearing
Capital Public Radio | November 13, 2013

Legislators Probe Taxpayer Cost of Aiding Fast-Food Workers
San Francisco Chronicle | November 13, 2013

Lowering the Minimum Wage? What a Terrible Idea
The Guardian | November 12, 2013

Editorial: Fast-Food Subsidy Unsavory
St. Louis Post-Dispatch | November 7, 2013

One NYC Family’s Struggle to Survive on a Fast Food Salary
PBS NewsHour | November 4, 2013

Bill Maher: Average fast food worker is 29, most are on public assistance
PunditFact | November 4, 2013

Low Wages Force More Than Half Of Fast Food Workers To Rely On Government Assistance
Business Insider | November 3, 2013

The Real Cost of Fast Food
Center for Economic and Policy Research | October 31, 2013

Editorial: Taxpayers’ $7 billion Subsidy to Fast-Food Profits Should End
St. Louis Post-Dispatch | October 30, 2013

Taxpayers Spending $7 Billion To Supplement Fast-Food Workers’ Wages
International Business Times | October 18, 2013

How Multi-Billion Dollar Corporations Rely on the Public to Feed their Workforce
American Prospect | October 16, 2013

Why US Taxpayers Pay $7 Billion A Year To Help Fast-Food Workers
NPR The Salt blog | October 16, 2013

Fast-food workers leaning on federal aid
CBS MoneyWatch | October 16, 2013

Public Aid Crucial to Fast-Food Workers
Boston Globe | October 16, 2013

Fast Food, Big Costs
San Diego Union-Tribune | October 16, 2013

Low fast-food wages come at high public cost, reports say
Washington Post | October 15, 2013

Studies Link Fast-Food Wages to Public Assistance
Wall Street Journal | October 15, 2013

McDonald’s Low Wages Cost Taxpayers $1.2 Billion Per Year: Study
Huffington Post | October 15, 2013

McDonald’s Low Wages Come With a $7 Billion Side of Welfare
Bloomberg Businessweek | October 15, 2013

Fast-Food Workers Are Costing the US $7 Billion a Year in Public Aid
Time | October 15, 2013

Majority of US fast-food workers need public assistance –study
Reuters | October 15, 2013

Majority of US fast food workers need public assistance
Al Jazeera America | October 15, 2013

Low fast-food wages come at high cost to US taxpayers, says report
The Guardian | October 15, 2013

Study: Taxpayers Foot Costly Bill for Fast-Food Workers
Atlanta Journal Constitution | October 15, 2013

Fast-Food Workers Depend on Public Aid, Report Says
Chicago Tribune | October 15, 2013

More Than Half of U.S. Fast Food Workers on Public Aid, Report Says
Los Angeles Times | October 15, 2013

Public Assistance for Fast-Food Workers Costs Taxpayers, Reports Say
Kansas City Star | October 15, 2013

Majority of Fast-Food Households are Using Welfare Assistance, Medicaid: Report
New York Daily News | October 15, 2013

Report: Burger King Workers Collecting More than $300M in Public Assistance
Miami Herald | October 15, 2013

Half of Fast Food Workers Receive Income Subsidies, Medicaid or Food Stamps, Study Says
Hartford Courant | October 15, 2013

Low-wage fast-food jobs leave hefty tax bill, report says
Berkeley News | October 15, 2013


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This report was sponsored by the University of California, Berkeley, Center for Labor Research and Education and the University of Illinois at Urbana-Champaign Department of Urban & Regional Planning.

 

Executive Summary

Nearly three-quarters (73 percent) of enrollments in America’s major public benefits programs are from working families. But many of them work in jobs that pay wages so low that their paychecks do not generate enough income to provide for life’s basic necessities. Low wages paid by employers in the fast-food industry create especially acute problems for the families of workers in this industry. Median pay for core front-line fast-food jobs is $8.69 an hour, with many jobs paying at or near the minimum wage. Benefits are also scarce for front-line fast-food workers; an estimated 87 percent do not receive health benefits through their employer. The combination of low wages and benefits, often coupled with part-time employment, means that many of the families of fast-food workers must rely on taxpayer-funded safety net programs to make ends meet.

This report estimates the public cost of low-wage jobs in the fast-food industry. Medicaid, the Earned Income Tax Credit and the other public benefits programs discussed in this report provide a vital support system for millions of Americans working in the United States’ service industries, including fast food. We analyze public program utilization by working families and estimate total average annual public benefit expenditures on the families of front-line fast-food workers for the years 2007-2011. For this analysis we focus on jobs held by core, front-line fast-food workers, defined as nonmanagerial workers who work at least 11 hours per week for 27 or more weeks per year.

Main Findings

  • More than half (52 percent) of the families of front-line fast-food workers are enrolled in one or more public programs, compared to 25 percent of the workforce as a whole.
  • The cost of public assistance to families of workers in the fast-food industry is nearly $7 billion per year.
  • At an average of $3.9 billion per year, spending on Medicaid and the Children’s Health Insurance Program (CHIP) accounts for more than half of these costs.
  • Due to low earnings, fast-food workers’ families also receive an annual average of $1.04 billion in food stamp benefits and $1.91 billion in Earned Income Tax Credit payments.
  • People working in fast-food jobs are more likely to live in or near poverty. One in five families with a member holding a fast-food job has an income below the poverty line, and 43 percent have an income two times the federal poverty level or less.
  • Even full-time hours are not enough to compensate for low wages. The families of more than half of the fast-food workers employed 40 or more hours per week are enrolled in public assistance programs.