California raises fast food minimum wage to $20, benefiting workers but concerning some chains
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California is raising the minimum wage to $20/hr for fast food workers at chains with 60+ locations, affecting 500k+ people.
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The 25% raise is a big win for low-paid fast food workers, but some chains are warning of imminent price hikes, job cuts, and automation.
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Some franchise owners plan to reduce workers' hours to cut costs instead of jobs. Research on past minimum wage hikes shows cuts to hours is the main side effect.
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Fast food workers like Sandra Jauregui are happy for the raise but anxious about potential downsides like fewer work hours.
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It's a high-profile case study on how higher minimum wages spread through local economies, with lessons for other states and industries.