California's New $20 Minimum Wage for Fast Food Sparks Debate

California's new $20 minimum wage law for fast food workers went into effect April 1, 2023, increasing wages 25% from the previous $16 per hour rate.

Many fast food franchisees in the state have responded by laying off workers, raising prices, postponing renovations, and taking other cost-cutting measures.

Some small restaurant owners say the higher labor costs make running their businesses unsustainable. Larger chains are adapting through more automation and closing underperforming locations.

Supporters say the pay raise allows fast food workers more financial stability without needing multiple jobs. Gov. Newsom praised it as proof "the future happens [in California] first."

Republican critics argue the law will eliminate jobs, raise prices significantly, and negatively impact minorities and teenagers the most.