It leads to reduced employment as firms cannot afford hiring at higher wages than they were paying originally.

It always results in excess supply of labor since minimum wage laws force firms to offer higher wages than market-clearing rates even under monopsony conditions.

Minimum wage laws do not affect monopsony-controlled markets because there is only one buyer of labor regardless of wage rate changes.

It can potentially lead to an increase in employment if set below monopsonist’s marginal cost of labor curve but above current wage rate.