California
California put up its fast-food wage to $20. Its governor is adamant it's not causing employment to fall.
Since Gov. Gavin Newsom first announced plans to raise wages for fast-food workers in California, both restaurant chain executives and franchisees have warned about the impacts it could have on their businesses.
As well as having to raise menu prices, some critics of the legislation warned that the higher wages could lead to restaurants laying off some of their workers, or even closing down.
Despite intensive lobbying from the fast-food industry, the new wage of $20 an hour for quick-service chains with at least 60 locations nationwide went into force on April 1.
The California Business and Industrial Alliance certainly isn’t happy with the legislation. It took out a full-page ad in USA Today in early June featuring mock obituaries for brands it says were “victims” of the new minimum wage.
The CABIA claimed in the ad that nearly 10,000 jobs had been cut between September, when Newsom signed the law, and January.
“Governor Newsom’s bad policy remains indefensible, and workers and businesses are suffering for it,” Tom Manzo, founder of the CABIA, told Business Insider over email. “It is obvious what is happening to the Fast Food industry no matter how Team Newsom spins the numbers.”
The CABIA ad cited data from the Hoover Institution, a public policy think tank and unit of Stanford University that aims to “limit government intrusion into the lives of individuals.”
It’s unclear where the Hoover Institution got its 9,500 figure from, though it did link a report by The Wall Street Journal, which said it used state figures.
Business Insider could not independently verify these figures, as data from both the California Employment Development Department and the US Bureau of Labor Statistics shows a drop of about 11,600 jobs when not seasonally adjusted.
The CABIA’s argument was based on a drop in employment between September and January. But BLS data shows that employment in California’s limited-service restaurant industry dips in the winter. In every year for at least the last decade, employment has been lower in January than in the preceding September.
It’s typically at its lowest in January and its highest in August.
The BLS data includes employment at all limited-service restaurants, including those exempt from the new minimum wage.
Restaurants typically hire more workers during the summer months as tourism fuels spending and people spend more time outside their homes.
Seasonally-adjusted BLS figures, which take yearly fluctuations into account, show that employment in California’s limited-service restaurant industry actually rose by about 6,000 people between September and January.
Newsom has clapped back at criticism of the new minimum wage
“California’s fast food industry has added jobs every month this year, including roughly 10,600 new jobs in the two months since Governor Gavin Newsom signed the fast food minimum wage bill into law,” his office said in a recent press release.
The following graph, made using BLS data, shows that employment in limited-service restaurants in California has been higher than 2023 levels for every month so far this year when not seasonally adjusted.
However, Newsom’s remarks have to be taken with a pinch of salt, too. The year-over-year growth in limited-service restaurant employment is a continuation of a trend seen before the pandemic, too, with total employment in the industry growing every year.
And the month-on-month growth in employment so far this year is nothing new. Employment typically grows in the buildup to the summer.
It is clear some fast-food chains have laid off workers in California, including in some cases by closing restaurants, partly in response to the new legislation. Seasonally-adjusted BLS data suggests that there has been a small dip in workers in California’s limited-service restaurant industry — about 2,500 — since January.
However, the BLS statistics suggest that the situation is not as dire as the CABIA paints it to be.
The $20 minimum wage was introduced to support workers in a state with a notoriously high cost of living. The fast-food industry is generally known for low pay, with some workers having to pick up a second job to make ends meet.
Analysts previously told BI that the legislation is also expected to boost wages in other industries, as employers will face more competition for workers.
Have you been affected by California’s new $20 minimum wage? Email this reporter at gdean@insider.com.
California
Former California doctor sentenced in Matthew Perry’s overdose death
LOS ANGELES — A former California doctor was sentenced to 8 months of home detention and 3 years of supervised release Tuesday after pleading guilty to ketamine distribution in connection with the fatal overdose of “Friends” star Matthew Perry.
Mark Chavez pleaded guilty in 2024 to one count of conspiring to distribute ketamine to Perry, who died at 54. Chavez appeared Tuesday before U.S. District Judge Sherilyn Peace Garnett in Los Angeles. He faced up to 10 years in prison.
He will also be required to complete 300 hours of community service and pay a $100 special assessment to the U.S. government.
“My heart goes out to the Perry family,” Chavez said outside of court after his sentencing.
Zach Brooks, a member of Chavez’s legal team, said Tuesday: “what occurred in this case was a profound departure from the life he had lived up to that point. The consequences have been severe and permanent. Mr. Chavez has lost his career, his livelihood, and professional identity that he has worked for decades to develop.”
“Looking forward, Mr. Chavez understands that accountability does not end with this sentence. He’s committed to using the rest of his life to contribute positively, to support others and to ensure that nothing like this ever happens again,” Brooks said. “While he cannot undo what occurred, he can choose how he lives his life from this moment.”
Chavez was one of five people charged in connection with Perry’s death. The TV star died of an accidental overdose and was found dead in a hot tub at his Los Angeles home in October 2023.
Chavez’s lawyer, Matthew Binninger, has previously said his client was “incredibly remorseful” and “accepting responsibility” for his patient’s overdose.
Chavez was a licensed physician in San Diego who formerly operated a ketamine clinic. Prosecutors said he sold ketamine to another doctor, Salvador Plasencia, who then distributed it to Perry.
“I wonder how much this moron will pay,” Plasencia said in a text exchange to Chavez, according to the investigators. “Lets find out.”
Earlier this month, Plasencia was sentenced to two and a half years in federal prison for his involvement in the case.
Chavez wrote “a fraudulent prescription in a patient’s name without her knowledge or consent, and lied to wholesale ketamine distributors to buy additional vials of liquid ketamine that Chavez intended to sell to Plasencia for distribution to Perry,” the indictment in the case said.
In the month before his death, the doctors provided Perry with about 20 vials of ketamine and received some $55,000 in cash, according to federal prosecutors.
Perry was undergoing ketamine infusion therapy to treat depression and anxiety, according to a coroner’s report. However, the levels of ketamine in his body at the time of his death were dangerously high, roughly the same amount used for general anesthesia during surgery. The coroner ruled his death an accident.
Before his death, Perry was open about his lengthy struggles with opioid addiction and alcohol use disorder, which he chronicled in his 2022 memoir, “Friends, Lovers and the Big Terrible Thing.”
Katie Wall reported from Los Angeles and Daniella Silva reported from New York.
This is a developing story. Please check back for updates.
California
California’s first mobile 911 dispatch classroom launches in Fresno
FRESNO, Calif. (FOX26) — A mobile classroom is giving Central Valley students a hands-on look at what it takes to answer 911 calls.
The classroom on wheels is one of only two in the nation, the first in California, and is part of the Fresno Regional Occupational Program’s dispatch pathway.
“Dispatchers are the steady heartbeat of the emergency response,” Fresno County Superintendent of Schools Dr. Michele Cantwell-Copher said during Monday’s ribbon-cutting ceremony.
California’s first mobile 911 dispatch classroom launches in Fresno (Photo: FOX26 Photojournalist Byron Solorio)
Inside the trailer, students train at real dispatch consoles designed to mimic a live dispatch center.
The program is a partnership with Fresno City College, creating a pipeline from the classroom to dispatch careers.
The curriculum is backed by California POST, or the Commission on Peace Officer Standards and Training, which sets minimum training and certification standards for law enforcement in the state.
It gives students the opportunity to practice call taking and scenario based decision making in a realistic and interactive setting,
said Michelle D., with POST.
The system uses realistic audio and artificial intelligence to recreate high-pressure simulations.
“If it’s a child that is injured, we can have the child crying in the background, so it really gives them that true, realistic first-hand experience,” said Veronica Cervantes, a Supervising Communications Dispatcher with the Fresno County Sheriff’s Office.
Dispatch supervisors say programs like this one could help address a growing staffing shortage.
More people need to be in this profession. We are hurting for dispatchers
explains Matt Mendes, a Dispatch Supervisor with the Fresno County Sheriff’s Office.
Officials say the job offers competitive benefits, including a starting salary of about $53,000, overtime opportunities, and the potential to earn six figures over time.
California
Feds say they foiled New Year’s Eve terror plot in L.A., Southern California
A plan to attack several Los Angeles-area businesses on New Year’s Eve was detailed, dangerous and already in motion, authorities said.
But as four people allegedly tied to an anti-government group gathered last week in the Mojave Desert to make and test several test bombs, FBI officials foiled the terror plot.
“They had everything they needed to make an operational bomb at that location,” First Assistant U.S. Atty. Bill Essayli said at a news conference Monday morning. “We disrupted this terror plot before buildings were demolished or innocent people were killed.”
The four people were arrested on suspicion of plotting an attack that Essayli called “organized, sophisticated and extremely violent.” They were all tied to a radical faction of the Turtle Island Liberation Front called Order of the Black Lotus, which FBI Assistant Director in Charge Akil Davis called “a violent homegrown anti-government group.”
Officials wouldn’t say what buildings or businesses were planned to be targeted but Essayli said they were different “logistics centers” similar to ones that Amazon might have.
Officials said they believe that everyone involved in the planned attack has been arrested, though the investigation into the plot remains ongoing.
The four alleged conspirators, Audrey Carroll, Zachary Page, Dante Gaffield and Tina Lai, have been charged with conspiracy and possession of an unregistered destructive device, Essayli said.
“The subjects arrested envisioned planting backpacks with improvised explosive devices to be detonated at multiple locations in Southern California, targeting U.S. companies,” Davis said.
The plans the FBI uncovered also included follow-up attacks after the bombings, which included plans to target ICE agents and vehicles with pipe bombs, Essayli said.
-
Washington1 week agoLIVE UPDATES: Mudslide, road closures across Western Washington
-
Iowa2 days agoAddy Brown motivated to step up in Audi Crooks’ absence vs. UNI
-
Iowa1 week agoMatt Campbell reportedly bringing longtime Iowa State staffer to Penn State as 1st hire
-
Iowa3 days agoHow much snow did Iowa get? See Iowa’s latest snowfall totals
-
Miami, FL1 week agoUrban Meyer, Brady Quinn get in heated exchange during Alabama, Notre Dame, Miami CFP discussion
-
Cleveland, OH1 week agoMan shot, killed at downtown Cleveland nightclub: EMS
-
World1 week ago
Chiefs’ offensive line woes deepen as Wanya Morris exits with knee injury against Texans
-
Minnesota1 week agoTwo Minnesota carriers shut down, idling 200 drivers