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California put up its fast-food wage to $20. Its governor is adamant it's not causing employment to fall.

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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.

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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.

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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.

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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.

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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.

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Have you been affected by California’s new $20 minimum wage? Email this reporter at gdean@insider.com.





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California

NBA Summer League: Standout players from Day 2 of California Classic

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NBA Summer League: Standout players from Day 2 of California Classic


Kel’el Ware made his presence felt in his second Summer League outing with 26 points and 11 rebounds.

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Day 2 of the 2024 California Classic saw settled nerves and scintillating performances as the early stages of NBA Summer League continued. Here’s a look at the individual showings that impressed in Sunday’s action:


Kel’el Ware, Miami

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Rookie big men who play with full-grown size and strength are not common, but Ware is showing he could be one of them early in Summer League play. The 20-year-old 7-footer took a whopping 21 shot attempts — only three of which came outside the paint — en route to 26-point, 11-rebound double-double in the Heat’s victory over Sacramento.


Cole Swider, Miami

Going undrafted in 2022 hasn’t stopped Swider from keeping a firm toehold in the NBA. He showed part of how he’s done that on Sunday, scoring 21 points on 12 shots while shooting 5-for-10 from 3-point range. The 25-year-old swingman is hoping to be the latest undrafted diamond unearthed by the Miami Heat.


Jordan Ford, Sacramento

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Another undrafted veteran who has landed two-way contracts to keep his NBA dream alive, Ford showed the kind of efficiency on Sunday that all teams would appreciate. The 26-year-old guard dropped 22 points on 8-for-13 shooting, including 4-for-6 from deep while committing just two turnovers in 27 minutes of action.


Ethan Thompson, Golden State

After lighting up the scoreboard in his 27-point debut on Saturday, Thompson showed he’s good for an encore with 22 points and 11 rebounds in 27 minutes in the Warriors’ win over the Lakers on Sunday. The 25-year-old guard exhibited an analytics-friendly game, shooting 2-for-5 from deep and 6-for-10 in the paint with zero midrange attempts.


Bryce McGowens, Charlotte

Second-round picks usually need to simmer before being ready to serve a real role. McGowens may be on his way after showing a valuable skill in Sundays’ win over China: getting to the free throw line. The 21-year-old and former 40th overall pick (2022) earned 14 free throw attempts in just 25 minutes of action. This comes after a sophomore season in which he upped his field goal percentage by more than four percent and cut his turnover rate by a third.

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16,000-acre wildfire in Santa Barbara County prompts evacuations near vineyards, Neverland Ranch

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16,000-acre wildfire in Santa Barbara County prompts evacuations near vineyards, Neverland Ranch


A wildfire in the mountains above Santa Barbara County’s Santa Ynez Valley has exploded to more than 16,000 acres, prompting evacuations near vineyards and Neverland Ranch.

The Lake fire was sparked near Zaca Lake on Friday afternoon just before 4 p.m. and quickly spread through dry grass, brush and timber, officials said. The fire was zero percent contained on Sunday.

The Sheriff’s Department expanded the evacuation area Saturday night along Figueroa Mountain Road near Neverland Ranch, once owned by the pop star Michael Jackson. More ground crews were dispatched to the area.

“Our goal is to keep [the fire] away from all those structures,” said Kenichi Haskett, the public information officer assigned to the firefighting operation. “It’s going to continue to grow.”

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The fire was burning in the mountains above Foxen Canyon Road, where there are more than a dozen vineyards. Several wineries north of Los Olivos were closed Sunday after fire officials cut off access to the road.

But there was no need to evacuate, said Ashley Parker, co-owner of Fess Parker Winery.

Though she could see the glow at night north of the winery, the wind appeared to be taking the fire farther north, away from populated areas, Parker said.

The threat level was low enough that the youngsters were simply entertained by the fire helicopters sucking water from the vineyard reservoir, she said.

“My nieces and their husbands live on the ranch,” Parker said. “All the kids were getting a real thrill out of it. Those helicopter pilots are really amazing. So lucky to have great fire crews.”

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The fire was fueled by low humidity and hot inland temperatures. When the fire started, a red flag warning was in place because of gusty winds. The wind has now calmed down, but temperatures remain high.

“With less wind, they can get aircraft in there to drop retardant,” said Joe Sirard, meteorologist for the National Weather Service in Oxnard. “But it’s life threatening heat for these firefighters.”

He said the humidity was still in single digits in some areas of the fire, especially in the highest elevations. The cause of the fire is unknown.

Amid scorching temperatures, crews continued to battle several wildfires in inland areas across California. The largest is the Basin fire in Fresno County, which started June 26. The fire, which has burned 14,027 acres, was 60% contained on Sunday.

Crews also gained the upper hand on the French fire, which began on the Fourth of July and briefly threatened the town of Mariposa outside Yosemite National Park. The 908-acre fire, which temporarily triggered mandatory evacuations and closed State Route 140 leading into the park, stands at 60% containment.

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The weather service has issued an excessive-heat warning until 9 p.m. on Wednesday for inland valleys from Cuyama in San Luis Obispo County down to the Antelope Valley in Los Angeles County. Forecasters say the highs along this stretch of inland California are expected to range from 106 to 116 degrees.

The relentless heat shattered records in some parts of the state on Saturday. Palmdale tied its all-time record of 115 degrees. Death Valley set a new record for July 6 with a high of 128 degrees.

On Saturday, a cooling trend prompted the weather service to call off excessive-heat advisories and warnings in many of the coastal areas.

In Los Olivos, vineyard managers said they were optimistic the fire would soon be contained. Parker said she expected her winery to reopen Monday.

“I really do believe the firefighters knocked it back and that area is going to be up to speed in a day,” she said. “The last thing I want to do is encourage people not to come. The town of Los Olivos is in good shape. Businesses are open. People are having a good time.”

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Adrian De La Cruz, who works at Petros Winery closer to town, said customers were being seated indoors because of the air quality.

“The smoke is getting really bad today,” he said. “Yesterday it was raining ash.”

He said one fire patrol officer stopped by, but he did not have time to talk to him.

“We were busy,” he said.

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California wildfires latest: Santa Barbara County blaze explodes, prompting evacuations amid heat wave

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California wildfires latest: Santa Barbara County blaze explodes, prompting evacuations amid heat wave


Firefighters battling flames amid a heat wave in Southern California are struggling to gain control of a wildfire that exploded over the weekend to more than 13,000 acres, prompting evacuations and threatening homes, including Michael Jackson’s Neverland Ranch, officials said.

The Lake Fire burning in Santa Barbara County near the Los Padres National Forest was 0% contained as of Sunday morning, according to the California Department of Forestry and Fire Prevention (CAL FIRE).

The Lake Fire is one of 21 wildfires burning in California on Sunday, CAL FIRE said.

Lake Fire in Santa Barbara County

The wildland blaze about 40 miles north of the city of Santa Barbara started on Friday afternoon near Zaca Lake in the Los Padres National Forest.

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The Santa Barbara County Sheriff’s Department issued evacuation orders on Saturday night as the blaze grew to 13,264 acres. The evacuation orders included the 5000 block of Figueroa Mountain Road, where Michael Jackson’s former ranch is located, officials said.

The Lake Fire burns close to what was Michael Jackson’s Neverland Ranch in Los Olivos, Calif., July 6, 2024.

David Swanson/Reuters

Warnings were also issued for residents in the surrounding area to be prepared to evacuate, according to the sheriff’s office.

The wildfire erupted during a heat wave that has enveloped the area and most of California.

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“An EXCESSIVE HEAT WARNING through next week continues to affect the fire with high temperatures, drying vegetation and little relief at night. The National Weather Service has reported that a heat wave this intense, this long, has not been experienced in this region in 20 years,” CAL FIRE said in a statement.

The fire grew rapidly on Saturday amid temperatures in the high 90s and with a relative humidity of around 11%.

“When relative humidity decreases, fire behavior increases because fine fuels like grass and pine needles become drier quickly,” according to the Western Fire Chiefs Association (WFCA).

The cause of the fire is under investigation.

PHOTO: A firefighting helicopter performs a water drop as the Lake Fire burns in Los Padres National Forest with evacuation warnings in the area on July 6, 2024 near Los Olivos, Calif.

A firefighting helicopter performs a water drop as the Lake Fire burns in Los Padres National Forest with evacuation warnings in the area on July 6, 2024 near Los Olivos, Calif.

Mario Tama/Getty Images

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Thompson Fire in Oroville

Fire crews were gaining the upper hand on the Thompson Fire, which started on Tuesday in the Butte County town of Oroville and caused the evacuations of nearly 30,000 residents as it grew to 3,789 acres, according to CAL FIRE. The blaze — which destroyed at least 25 structures, including homes — was 86% contained on Sunday.

Firefighters battled both flames and dangerous temperatures on Saturday in the Oroville area ranging from 110 to 116 degrees, according to CAL FIRE.

“For Sunday, hot and dry conditions will continue although high temperatures will be a couple of degrees cooler. However, the heat will still be at very dangerous levels and the EXCESSIVE HEAT WARNING will remain in effect,” CAL FIRE said in a statement.

Most of the evacuations caused by the Thompson Fire were lifted on Saturday.

PHOTO: An Orange County crew keeps an eye as the Lake Fire burns close to what was Michael Jackson's Neverland Ranch in Los Olivos, Calif., July 6, 2024.

An Orange County crew keeps an eye as the Lake Fire burns close to what was Michael Jackson’s Neverland Ranch in Los Olivos, Calif., July 6, 2024.

David Swanson/Reuters

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Basin Fire in San Joaquin Valley

The largest and most stubborn fire in the state, the Basin Fire burning in the foothills east of Fresno in the San Joaquin Valley, was 60% contained on Sunday after burning 14,027 acres, according to CAL FIRE. The blaze started on June 26 in the Sierra National Forest north of Pine Flat Lake and south of Shaver Lake and Wishon Reservoir.

The cause of the fire remains under investigation.

Temperatures in the area of the Basin Fire are forecast to reach 113 degrees on Sunday and remain in triple digits throughout the week.

French Fire near Yosemite National Park

The French Fire near Yosemite National Park in Mariposa County has burned 908 acres since erupting Thursday and was 45% contained as of Sunday morning, according to CAL FIRE.

Three firefighters were injured battling the wildfire, which has destroyed four structures, CAL FIRE said.

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McCain Fire in San Diego County

Another significant fire is the McCain Fire, which started on July 1 in southeast San Diego County.

As of Sunday, firefighters had the fire almost completely out, having achieved 95% containment on the blaze that has burned 1,595 acres.



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