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flag California’s $20/hour fast food wage law raised pay but increased prices, cut hours, and sped up automation, a UC-Santa Cruz study found.

flag California’s $20-per-hour fast food minimum wage law, enacted in 2024, has led to higher prices, fewer job opportunities, and increased automation, according to a UC-Santa Cruz study of 100 franchises. flag While average pay rose 18%, the policy reduced hours, eliminated overtime, and complicated benefit eligibility. flag Fast food chains accelerated use of kiosks, apps, and AI drive-throughs to cut labor costs, and independently owned restaurants raised prices and wages to stay competitive, affecting low-income consumers. flag A UC-Berkeley study found only a 3.7% price increase and no employment drop, but UC-Santa Cruz researchers criticized it for ignoring automation’s impact. flag The findings highlight unintended consequences of rapid policy changes in labor markets.

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