California’s mandate that workers at fast food chains be paid a minimum of $20 an hour went into effect Monday despite concerns that it could exacerbate the state’s unemployment and inflation problem.
The new rules raise the minimum wage by 25 percent for workers at large chain restaurants and establish a Fast Food Council that will have the power to implement further hikes up to 3.5 percent each year over the next five years.
While some workers will receive raises, others are likely to lose their jobs to automation or cutbacks. Minimum wage hikes tend to eliminate jobs for the most vulnerable, least-skilled workers in jobs that do not produce enough revenue to support the high wage level.
“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…
