Overview

• California's $20 minimum wage for fast-food workers went into effect on April 1, raising pay by 25% from the state's previous $16 minimum.
• Critics argue the wage increase could lead to job losses, higher prices for consumers, and a push towards automation in the fast-food industry.
• Supporters claim the wage hike will provide a much-needed boost to workers' living standards and stimulate the local economy through increased spending.
• Economists are divided on the policy's long-term effects on unemployment, with some predicting a higher natural rate of unemployment in California.
• Labor movements and wage increases in other sectors, such as hospitality, indicate a broader trend towards higher wages in the state.