A former California hotel staffer claims that he was fired on Friday after harassing Israeli guests and publishing footage of the incident, but the hotel said on Saturday that he had resigned.
California
California fast food wage hike has had detrimental impact, puts businesses in 'jeopardy,' critic says
California franchise operator Alex Johnson estimates his ten restaurant locations will be out $470,000 total due to the state’s new minimum wage law.
California Gov. Gavin Newsom’s successful push to hike the minimum wage for many of the state’s fast food workers is having a devastating impact on businesses, who have been forced to cut labor costs to survive, critics say.
Prices at major brands like Chipotle, McDonald’s and other fast food giants have increased in a move to keep up with the $20 per hour workers have been paid since the new wage went into effect on April 1. The rule impacts restaurants that have at least 60 locations nationwide, except those that make and sell their own bread.
The California Business and Industrial Alliance (CABIA) said nearly 10,000 jobs have been cut across fast food restaurants since Newsom signed California Assembly Bill 1287 into law last year. To highlight what it says are the unintended consequences of the law, CABIA has taken out an ad in Thursdsay’s statewide edition of USA Today with mock “obituaries” of popular fast food brands.
NEARLY 80% OF AMERICANS NOW CONSIDER FAST FOOD A ‘LUXURY’ DUE TO HIGH PRICES
A car goes through the drive-thru at a McDonald’s restaurant in San Pablo, California. Fast food chain restaurants are being hurt by an increase in the minimum wage for workers, a trade group says. (Justin Sullivan/Getty Images / Getty Images)
It highlights multiple restaurants that have had to raise prices and lay off workers to stay afloat and, in some cases, shut down stores. The ad features news clips documenting changes made by brands like El Pollo Loco, Subway and Burger King across the state.
“California businesses have been under total attack and total assault for years,” CABIA president and founder Tom Manzo told FOX Business. “It’s just another law that puts businesses in further jeopardy.”
When he signed the law, Newsom said the state was getting “one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast food workers a stronger voice and seat at the table.”
Governments, unlike private businesses, have options when they run out of money, said Manzo, who said officials were living in a “fantasyland” by thinking that drastic wage increases will help workers or businesses.
FAST FOOD CHAINS ARE OFFERING LOW-COST DEALS FOR CUSTOMERS; HERE ARE 5
The California Gov. Gavin Newsom-approved $20 minimum wage is causing the “collapsing of businesses,” says Los Angeles restaurant owner Angela Marsden. (Getty Images/Fox News Digital/Photo illustration / Fox News)
“You can only raise prices so much,” he said. “And you’re seeing it. People are not going to pay $20 for a Big Mac. It’s not going to happen.”
He noted that to comply with the law, some restaurants have cut employee hours and will most likely move toward automation in the future.
In the weeks before the wage hike went into effect, some California fast food owners began letting go of workers in anticipation of the increased labor costs. In December 2023, the Southern California Pizza Co., which owns multiple Pizza Huts stores, announced layoffs of around 841 delivery drivers across the state.
Meanwhile, the increase in pay comes as inflation has resulted in higher prices for fast food items. A recent survey conducted by LendingTree found 78% of consumers now consider fast food to be a “luxury” purchase due to how expensive the meals have become.
FOX Business’ Brian Brenberg looks at rising fast food prices under President Biden.
FOX Business has reached out to Newsom’s office.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Part of the push for the hike was to give fast food workers more financial freedom in a state known for its high cost of living. However, critics contend fast food jobs were meant for young people as a stepping stone.
“It’s a starter industry,” Manzo said. “You get a job as a kid working in a fast food restaurant and you learn some good work ethic and that takes you into life.”
California
‘Baby killer:’ California hotel staffer fired after harassing Israeli guests | The Jerusalem Post
A hotel staffer, identifying as Ryan Smith on a GoFundMe fundraiser, said in a Thursday Instagram post that he had said “free Palestine” to a pair of Israeli guests at the Oceanpoint Ranch in Cambria.
An Israeli woman confronted him, according to the video published by Smith, telling him that he should be “completely objective” to paying guests.
Smith expressed shock when the guest said that she was a Zionist after he had used it as a slur, and then demanded to know if her partner had served in the IDF.
“Are you a baby killer?” asked Smith.
The Israeli man said that he refused to interact with the hotel staffer and continued on, but his partner expressed concern about staying at a hotel where he worked.
Called for others to “give them hell”
“I won’t stay here, certainly he’ll break into our room and do something,” the woman said in Hebrew.
Smith claimed on Instagram that the woman threatened to call the police because “the only thing these cowards can do is hide behind the pedo[phile] regime that runs the country.”
Alongside the video, Smith called for others to “give them hell” if one saw them in California, and that if he “could’ve he would’ve.”
“I’ve never stared into the soul of the devil like I did tonight,” wrote Smith. “The woman (dual citizen of Israel) proceeds to confront me after I see [sic] ‘free Palestine’ as they leave the lobby. She then takes a step further and proceeds to admit to being a Zionist.”
Smith later opened a fundraiser, claiming that he had been “let go” from his job, and asked for donations to support him while he sought new employment. As of Sunday morning, Smith raised $11,773 dollars.
“The world needs to be set free, and I believe peace and love will overcome,” Smith said on his fundraiser web page.
The Oceanpoint Ranch did not immediately respond to a query from The Jerusalem Post, but said in a Saturday social media post that Smith had “unilaterally resigned” from his position after the hotel opened an investigation into the incident.
“The events in the video do not reflect the professionalism and hospitality that our team members are trained to deliver to all our valued guests,” said Oceanpoint Ranch.
“Our team remains committed to fostering a respectful environment for all of our guests, employees, and community.”
California
Letters to the Editor: The purpose of California’s journalism fund isn’t just protecting its biggest players
To the editor: The role of government is not to pick winners and losers in journalism, which is precisely why the California Civic Media Program was designed with independent safeguards from the outset (“Ensure that California’s journalism fund supports key players,” May 18). Funding decisions will ultimately be made by an independent third-party administrator, not by state officials or political appointees.
The program also followed the Legislature’s direction in the creation of a nine-member advisory committee, which has continuously emphasized expanding access to local, ethnic and community media, particularly in underserved communities and regions with limited local news coverage — goals enshrined in the program’s statute. Furthermore, it says the advisory board “may consider” awarding funds based on the number of journalists an organization employs — but in no way requires it.
The purpose of the California Civic Media Program was never simply to preserve the state’s largest publishers, although they are critical. It was to help close information gaps, strengthen newsroom sustainability and ensure more Californians have access to accurate, well-sourced local reporting that empowers participation in civic life and builds stronger communities across the state. At a time when local journalism is struggling nationwide, California is working hard to help sustain and strengthen it for future generations.
Dee Dee Myers, Sacramento
This writer is director of the Governor’s Office of Business and Economic Development.
California
Smoldering legacy: A toxic fire prompts new safety rules as California’s green-power shift speeds ahead
It’s been 16 months since a massive fire tore through one of the world’s largest lithium-ion battery storage facilities in rural Monterey County, spewing toxic gas into the air as it smoldered for several days, and, even today, cleanup is far from complete.
It will take at least several more months, and possibly another year, before the charred, waterfront power plant owned by Texas-based Vistra Corp. is cleared, Monterey County Supervisor Glenn Church said.
The process is slow because it is dangerous, with thousands of batteries yet to be removed and crews working carefully to avoid reigniting a fire. “Of course, quicker would be better, but safety has to be first,” Church said.
The blaze in Moss Landing provoked hostility toward battery projects in California, where state officials are pursuing an aggressive goal of 100% clean energy usage by 2045 to increase the grid’s capacity and combat the catastrophic effects of climate change.
A safe energy transition
Battery energy storage systems hold excess energy generated during the day — by solar panels, for instance — and release it into the power grid during times of high demand, including evening hours. California has invested heavily in battery storage, which, my colleague Hayley Smith reported, grew more than 3,000% from 500 megawatts in 2020 to more than 15,700 megawatts in 2025.
A new bipartisan bill introduced this month in the U.S. House of Representatives aims to keep this transition safe.
The Better Energy Storage and Safety Act would dedicate federal funding of $30 million annually over the next five years toward research and stress testing for the systems.
It was authored by Rep. Jimmy Panetta, a Democrat whose Central Coast district includes Moss Landing, and co-led by Rep. Pat Harrigan, a North Carolina Republican.
Despite efforts by the Trump administration to stymie green energy, Panetta said in an interview, “you have to accept the reality of renewables … That’s why we want to ensure that it’s as safe as possible.”
A fast energy transition
The Moss Landing fire has represented the proverbial elephant in the room in the midst of California’s rapid energy transition, Church said.
He has called for more local control over where battery systems are built and been a vocal advocate for more safety regulations, saying the catastrophe in Moss Landing should be learned from, not written off as “an inconvenient accident.”
With proper engineering, lithium-ion battery storage sites pose little risk of catching fire, Shirley Meng, a molecular engineering professor at the University of Chicago and internationally known battery expert, told me last fall. She said safety has improved dramatically in recent years and that the failure rate is about 1 in 10 million for all types of lithium-ion batteries.
California is now speeding review for large-scale renewable energy projects through a new fast-track permitting program that does not require sign-off from county and municipal governments — a fast-track process that Church has criticized.
Last fall, Gov. Gavin Newsom signed a new state law — prompted by the Moss Landing accident— that requires battery storage safety standards and requires developers to coordinate closely with local fire departments.
Stacey Shepard, a spokesperson for the California Energy Commission, said in an email that “today’s battery systems are governed by rigorous safety standards,” use improved technology and “are placed in outdoor containers rather than inside buildings,” unlike in Moss Landing site.
The cause of the Moss Landing fire is still under investigation
Firefighters let it burn for days, citing the dangers of dousing lithium-ion battery fires with water, which can cause dangerous chemical reactions.
The blaze ignited inside a former turbine building that contained a 300-megawatt system made up of about 4,500 cabinets, each containing 22 individual battery modules, according to Vistra Corp.
Of the 99,000 individual LG battery modules in the building, about 54,450 burned, according to Vistra. Justin Daily, a spokesman for the company, said in an email that as of May 8, more than 31,000 battery modules had been removed, de-energized and shipped to recycling facilities.
“We are now working to enable safe access to batteries in the damaged portion of the building,” he said.
Today’s top stories
A bird flies by a plume of smoke from the Sandy fire off Redwood Grove Court in Simi Valley.
(Kayla Bartkowski / Los Angeles Times)
Multiple wildfires trigger unhealthful air quality alert in SoCal
Apartment scouts are on the rise in Los Angeles
- They aren’t real estate agents or brokers. Rather, they are savvy entrepreneurs who tour apartments, share listings online and, in some cases, work one-on-one with clients to find a place that fits their specific aesthetic and budget.
- The demand for apartment scouts highlights the pressures of L.A.’s competitive rental market, where vacancies are scarce and rental rates are among the highest in the country.
What else is going on
Commentary and opinions
This morning’s must-read
Another must-read
For your downtime
On May 22, Disneyland’s Millennium Falcon: Smugglers Run will include a new mission as well as new destinations such as the gas-like locale of Bespin, seen here in concept art provided by Disney. The tweaks are tied to the film “The Mandalorian and Grogu.”
(Disney Parks)
Going out
Staying in
Question of the day: Sticker shock: Send us examples of California houses with sticker prices that truly shocked you.
Is it worse than this burnt-out three-bedroom in Torrance that sold for over $1 million?
Email us at essentialcalifornia@latimes.com, and your response might appear in the newsletter this week.
And finally … the photo of the day
A firefighter pauses while clearing brush in the Sandy fire in Simi Valley.
(Kayla Bartkowski / Los Angeles Times)
Today’s photo is from Times photographer Kayla Bartkowski on a hill in Simi Valley near the Sandy fire, one of multiple blazes consuming more than 20,000 acres.
Have a great day, from the Essential California team
Hailey Branson-Potts, staff reporter
Hugo Martín, assistant editor, Fast Break desk
Kevinisha Walker, multiplatform editor
Andrew J. Campa, weekend writer
Karim Doumar, head of newsletters
How can we make this newsletter more useful? Send comments to essentialcalifornia@latimes.com.
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