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
California Highway Patrol work to keep drivers safe during holiday weekend enforcement
BAKERSFIELD, Calif. (KBAK/KBFX) — The California Highway Patrol is urging drivers to stay focused on the road as they head out for Fourth of July celebrations.
The holiday weekend can be a dangerous time on our roads as millions of drivers are expected to travel.
CHP Officer Jorge Toro joined Eyewitness News Mornings to share how drivers can stay safe behind the wheel.
Officer Toro also highlighted the importance of sober driving over the holiday.
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He says anyone hosting a party should make sure all of their guests get home safely, ensuring anyone who may be impaired doesn’t drive.
California
California returns stretch of coast to Indigenous tribes. ‘This is beyond huge’
California is returning a stretch of rugged Mendocino County coast to the Indigenous nations whose ancestors once stewarded its shores.
State transportation officials recently approved the transfer of Blues Beach and the surrounding bluffs to Kai Poma, a nonprofit founded by representatives of the Sherwood Valley Band of Pomo Indians, Round Valley Indian Tribes and Coyote Valley Band of Pomo Indians.
The transfer of 136 acres just south of the community of Westport will mark the first time land managed by the California Department of Transportation has been returned to Indigenous tribes.
“This is beyond huge,” said J. Carlos Rivera, tribal chairman of the Sherwood Valley Band of Pomo Indians. “It’s enormous from our tribal perspective that we are basically obtaining the land that our people once lived on before colonization.”
California purchased the swath of rocky cliffs and windswept shoreline in the 1960s to expand the construction of Highway 1 and create a scenic viewpoint for highway travelers, according to a California Coastal Commission report.
More recently, public access has been largely unregulated, and summer weekends and holidays have drawn large groups who camp and party on the beach, at times driving through sensitive areas, damaging cultural sites and leaving behind trash, the report states.
Kai Poma plans to conduct cultural and archaeological resource studies and environmental surveys and then prepare a resource management plan for the property, according to planning documents. The nonprofit and the Coastal Commission have drafted a public access management plan that states the land will be open from sunrise to sunset.
Rivera described the entire property as a sacred site. The coastal waters are used by tribal people for seaweed and abalone gathering, and the shores host youth cultural camps, he said. “Protecting the land, it has a deeper meaning for us because we’re connected to the land,” he said.
The effort to acquire the land took years — and required a change in state law. Caltrans lacked the ability to transfer land to tribal governments until 2021, when Gov. Gavin Newsom signed a bill sponsored by state Sen. Mike McGuire (D-Healdsburg) that enabled the transfer, according to a news release issued at the time. The law also bars commercial activity on the property and requires public access be maintained.
“With 136 acres now officially transferred into tribal stewardship, one of the most spectacular stretches of the Mendocino Coast will be forever protected,” McGuire said in a statement.
“This agreement, the first of its kind in California, gives these three dynamic Native American tribes the rightful opportunity to reclaim sacred lands and cultural traditions on this special piece of earth. And it’s about damn time.”
The land transfer cleared its last regulatory hurdle June 26 with the approval by the California Transportation Commission, said Neil Thapar, an attorney who works as an advisor and legal consultant to Kai Poma. Caltrans staff will next record the deed transferring the title from the state of California to Kai Poma, which is expected to happen any day, he said.
California
What’s open, closed for Independence Day weekend in California?
Fireworks Safety Guide
Essential safety tips for buying, handling, and watching fireworks to ensure a safe celebration.
With July 4 falling on a Saturday this year, many businesses and organizations are taking the day off Friday, July 3, to mark America’s 250th birthday. From banking to mail service, here’s what’s open and closed for the holiday weekend.
Most federal offices closed, mail service to continue
Non-essential federal offices will be closed on July 3. However, mail service will continue as normal, and post offices are scheduled to remain open.
Most California government offices to remain open
Most California government offices will be open on July 3, with some exceptions.
DMV offices throughout the state will be open. However, the Employment Development Department will be closed.
DMV offices that offer Saturday hours will be closed on July 4.
Private parcel services to remain open
UPS and FedEx are both scheduled to operate normally on July 3, but will suspend service on July 4.
Stock markets closed
Both the New York Stock Exchange and Nasdaq will be closed on July 3.
Most banks to stay open
While most banks were expected to operate normally on July 3, some may operate under modified holiday hours. All banks will be closed on July 4.
Online banking services should remain operational.
Grocery stores
Most major grocery chains will be open on both July 3 and July 4. Trader Joe’s locations will be open for regular business on July 3 but will close early at 5 p.m. on the Fourth of July.
Retailers
Many major retail stores, such as Walmart and Target, plan to operate under normal business hours on both July 3 and 4. All Costco warehouse stores operate under normal business hours on July 3, but will close on July 4.
Restaurants
Most major restaurant chains remain open on July 4, but some will have limited hours. All Raising Cane’s locations will close on July 4.
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