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California Implements $20 Minimum Wage for Fast Food Workers Amid Job Cuts and Automation

The new law, effective April 1, aims to improve wages but has led to layoffs and increased automation in the fast food industry.

  • A California state law raising fast food workers' wages to $20 an hour has resulted in layoffs and reduced hours as restaurants cut costs.
  • The law covers fast food restaurants that are part of chains with 60 or more locations nationally, affecting over 500,000 workers.
  • Employers and workers face confusion over the law's application, leading to inquiries about exemptions and the need for guidance.
  • Automation is on the rise, with up to 82% of restaurant positions potentially replaceable by robots, as businesses seek to control labor costs.
  • Critics argue the minimum wage hike could harm those it aims to help by reducing employment opportunities and pushing for greater automation.
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