Republicans Warn California’s $20 Minimum Wage Rise Will See Workers Replaced by Robots

This adjustment, effective from Monday, represents a substantial increase in earnings for many workers, potentially up to 25% more than their previous wages. The move has sparked a variety of reactions across the political spectrum.

He argues that the increase in labor costs could encourage fast food restaurants to replace human workers with automated technologies, such as iPad kiosks and robot cooks, impacting employment opportunities.

This change, they argue, is a direct consequence of the higher labor costs imposed by the new law.

“Fast food prices are already rising, and employees are being replaced by self-checkout kiosks and soon robot cooks,” LaMalfa told The Daily Mail.

This law was passed with the intention of acknowledging the crucial role of over 500,000 fast food employees in the state, many of whom are adults supporting families rather than teenagers earning extra money.

“As if prices in California aren’t high enough,” LaMalfa remarked, suggesting that the wage hike could lead to higher prices, fewer jobs, and reduced dining options as some establishments may close.

Reuters reports that this sector employs a significant number of workers across the state, with the median fast-food worker earning $13.43 an hour nationally in 2022, while in California, the average was $16.60, according to the Bureau of Labor Statistics.

He emphasized that the people likely to be affected by job reductions are “predominantly low skilled, low income, and very young,” who are often from Hispanic or African American backgrounds. Cruz highlighted the importance of entry-level jobs in providing crucial skills to these workers.

He criticized the wage increase for potentially eliminating these opportunities, saying, “Democrats are pulling up the ladder and saying you don’t get to get skills.”

Some businesses, like two major Pizza Hut franchisees in California, have already reacted by laying off 1,200 delivery drivers in anticipation of the increased labor costs.

Other operators are exploring ways to manage these expenses, such as reducing operating hours or simplifying their menus to focus on items that are less costly to prepare.

A study by the Congressional Budget Office last December indicated that raising the federal minimum wage to $17 by 2029 could benefit over 18 million people with increased wages but might also lead to a reduction in employment by approximately 700,000 workers. This highlights the complex trade-offs involved in setting wage policies.