California Raises Minimum Wage to $20/hr for Fast-Food Workers at Larger Chains

California passed a law to raise the minimum wage for fast-food workers at larger chains to $20/hr, up from $16/hr, after negotiations between workers and industry.

Some businesses have claimed the wage increase will lead to job losses, price hikes, and harm franchise owners, but researchers dispute those arguments.

Pizza Hut laying off delivery drivers is cited as an example, but experts say that was likely happening anyway due to increased use of gig drivers.

A group representing franchise owners donated over $500k to oppose the law, and some chains have already raised prices, though the law only applies to large chains.

Researchers argue minimum wage increases historically have not led to job losses or large price hikes, and that companies could absorb more costs without impact.