Payam Javan: California’s fast-food workers are bracing for significant consequences as a state law hikes the minimum wage to $20 per hour starting Monday.

While hailed as a win by organized labor and Democratic politicians, the move is already prompting businesses to announce layoffs, reduced hours, and plans for increased automation. Critics argue that such a drastic wage increase for relatively low-skilled jobs will inevitably lead to higher prices for consumers and force employers to make tough decisions to stay afloat financially.

Despite warnings about potential negative impacts, the law’s supporters emphasize its benefits for workers in one of the country’s most expensive states. However, the reality for many businesses means adapting through measures like reduced hours, menu changes, and increased efficiency. As the law takes effect, California’s fast-food sector is already experiencing a decline in employment, signaling the complexities and challenges of implementing such a substantial minimum wage increase.