California fast food workers now earn $20 per hour. Franchisees are responding by cutting hours.

When California’s minimum wage increase went into effect in April, fast food workers across the state went from making $16 to $20 overnight. It's already having an impact, according to local operators for major fast food chains, who say they are reducing worker hours and raising menu prices as the sudden increase in labor costs leaves them scrambling for solutions. Gov. Gavin Newsom says the hike was necessary to give more than half a million fast food workers in the state a living wage. While its long-term effects remain uncertain, historical minimum wage increases have not led to less jobs.