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U.S. News

California Raises Minimum Wage For Fast Food Workers Despite Highest Unemployment Rate In the Nation

via NBC

California’s new minimum wage rules for large fast food chains that raise pay to $20 per hour took effect despite concerns about potential negative economic impacts.

While the higher wage will increase pay for some workers, others may lose their jobs through automation or cutbacks as restaurants aim to control costs.

“Some restaurant chains have responded by laying off workers. Pizza Hut franchises said in December that it laid off its delivery drivers in favor of using apps like Uber Eats and Door Dash in the face of the increase,” UPI wrote.

The wage hike could also exacerbate California’s already high inflation rate and unemployment.

Some fast food franchises have already laid off delivery drivers in favor of third-party apps.

The minimum pay increase may further inflate prices for consumers and attract more illegal immigration while providing incentive for some employers to hire undocumented workers off the books.

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