A new working paper from the University of California, Santa Cruz, has raised questions about the impact of California's $20 minimum wage for fast‑food workers, which was implemented in April 2024. The study suggests that the wage hike may have resulted in unintended consequences across the fast food industry, including reduced worker hours, higher menu prices, and increased pressure on franchise owners to reduce costs or automate jobs. The state government disputes these findings, stating that higher wages are strengthening California's economy and lifting workers out of poverty. The bill, AB 1228, requires large fast‑Food chains to pay workers at least $20 per hour, higher than California's general minimum wage. The research also found that the increase in fast food employment created a greater interest in fast-food jobs, creating a greater labor demand for businesses and creating lower labor costs for businesses.