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California Fast Food Workers Experience Wage Hike Impact

Part-time employee Adriana Ruiz, 18, cleans a table at a Wendy's restaurant owned by Lawrence Cheng and his family in Fountain Valley, Calif., Thursday, June 20, 2024. (AP Photo/Jae C. Hong)

Recent changes in California's fast food industry have sparked a wave of adjustments as businesses grapple with increased labor costs following a new state law that raised the hourly wage for fast food workers from $16 to $20. Many restaurant owners are feeling the impact, with some forced to make tough decisions to stay afloat.

Some owners, like Lawrence Cheng, have had to reduce staff numbers and take on additional shifts themselves to manage the higher costs. Despite concerns about potential layoffs and closures, early data suggests that the industry has continued to show job growth following the wage hike.

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