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California's $20 Minimum Wage Law Triggers Major Job Cuts in Fast-Food Sector

Fast-food chains in California have cut nearly 10,000 jobs and raised prices in response to the state's new minimum wage law.

  • The law, effective April 1, mandates a $20 hourly wage for fast-food workers at chains with 60 or more locations.
  • Major chains like McDonald's and Burger King have increased prices and reduced employee hours to offset costs.
  • Automation and digital kiosks are being rapidly adopted to reduce labor expenses.
  • Despite job cuts, some restaurant executives note an improvement in the quality of job applicants.
  • Critics argue the law harms the very workers it aims to help by reducing employment opportunities.
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