California's $20 minimum wage for fast food workers led to 'negative outcomes,' researchers say
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California's $20 minimum wage for fast food workers led to 'negative outcomes,' researchers say
""The results indicate a plethora of negative outcomes such as higher menu prices for consumers, reductions in employee working hours, widespread elimination of overtime and loss of benefits for employees," said Stephen Owen, an Economics Lecturer, University of California, Santa Cruz."
""Further decreases in employee opportunities are being driven by automation and the adoption of labor replacement technologies is accelerating.""
""The prices at the establishments soared by 14.5% after the new minimum wage became law.""
California's minimum wage increase for fast food workers resulted in negative consequences, including higher menu prices, reduced employee working hours, and increased automation. The minimum wage rose from $16 to $20 in April 2024, aiming to help workers cope with rising living costs. However, research indicated a loss of 10,700 jobs in the sector and a 14.5% price increase at establishments. Despite these findings, California officials continued to support minimum wage laws, including a phased increase for airport and hotel workers in Los Angeles.
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