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Celeb chef slams Gavin Newsom's ‘self-congratulatory propaganda’ about California’s $20 fast-food minimum wage

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Celeb chef slams Gavin Newsom's ‘self-congratulatory propaganda’ about California’s  fast-food minimum wage


Celeb chef slams Gavin Newsom’s ‘self-congratulatory propaganda’ about California’s $20 fast-food minimum wage

California’s $20 minimum wage for fast-food workers took effect on Apr. 1.

While the legislation has faced criticism, Gov. Gavin Newsom is celebrating its impact.

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“Since the law was enacted, California has added 11,000 new jobs in the industry. As of July, our state boasts a historic 750,500 fast food jobs,” he wrote in a recent op-ed for Fox News, citing data from the Bureau of Labor Statistics.

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According to Newsom, California now has more fast food jobs than ever before.

He also highlighted how the legislation has improved conditions for those working in the fast food sector, stating, “Because of California’s compassion for working people, these men and women living paycheck to paycheck now enjoy better working conditions, reduced financial stress and greater opportunities for upward mobility.”

However, not everyone shares Newsom’s enthusiasm. Celebrity chef and restaurant owner Andrew Gruel dismissed the op-ed as “typical Gavin Newsom self congratulatory propaganda based on questionable data.”

“I think it’s a little early to put the book on the shelf and take the victory lap here,” Gruel told Fox Business, cautioning that it may be too soon to fully assess the long-term effects of the wage hike on the industry.

Analyzing the numbers

Gruel raised concerns about the accuracy of Newsom’s claims.

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“These aren’t even seasonally adjusted numbers,” he noted, referring to the data cited by the governor.

Experts have echoed Gruel’s concerns about the lack of seasonally adjusted data.

“So the governor is saying that the data shows California has the highest fast food employment it’s ever had. Unfortunately, he’s using a preliminary data set released by the Bureau of Labor Statistics,” Rebecca Paxton, research director at the Employment Policies Institute, told KTLA. “The latest set that the Bureau of Labor Statistics releases is called seasonally adjusted, which is what economists use to measure policy impacts,”

The distinction is significant because seasonally adjusted data accounts for typical seasonal employment fluctuations, such as temporary hiring spikes during holidays or reduced staffing in slower months. Seasonal adjustment provides a clearer picture of underlying trends by smoothing out these predictable variations. Without this adjustment, unadjusted numbers can present a skewed perspective, potentially misleading when assessing long-term policy impacts.

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Gruel also questioned the timeframe of Newsom’s analysis.

“He’s using like, nine or 10 months, and really it’s only been three months in this data in which the bill actually took effect,” he explained. “In the grand scheme of 750,000 jobs isn’t a huge number.”

However, Newsom’s breakdown did reveal some promising short-term figures. It showed that in April 2024, California’s fast food industry employed 739,500 workers. This number grew to 743,300 in May, 744,700 in June, and reached 750,500 by July. This means that between April and July — a period of just three months — the state added 11,000 fast food jobs

‘Unintended consequences’

Gruel argued that even if Newsom’s numbers are accurate, they fail to capture the full picture due to the “unintended consequences” of the legislation.

One major consequence, according to Gruel, is the reduction in worker hours, which inflates job creation statistics without genuinely benefiting employees.

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“The first thing that these multi-unit restaurants did when they found out about this bill was they took people who were working overtime — so anything over 40 hours — and they cut their hours down to 25 or 30. Those people went and got other jobs,” he explained.

Gruel pointed out that instead of having one person work 55 or 60 hours a week, restaurants now split that position between two employees working 30 to 32 hours each. This appears as job growth on paper.

He shared insights from his own experience as a restaurant owner, observing a noticeable increase in fast food workers seeking additional employment since the law took effect.

“I know that because starting in at roughly April, we got flooded on the full-service side with people who were looking for a second job because they weren’t allowed to work overtime anymore, and this was in our restaurants, and we still are getting flooded from fast food workers looking for another job,” he recounted.

Read more: Rich, young Americans are ditching the stormy stock market — here are the alternative assets they’re banking on instead

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Some restaurants have closed

Gruel’s concerns align with classical economic theory, which suggests that setting a wage floor above the market equilibrium can lead to unintended consequences. Employers, faced with higher labor costs, may reduce hiring, cut workers’ hours, or even eliminate positions altogether to maintain profitability. This is especially problematic for low-wage workers with less experience or skills, who are more vulnerable to these changes.

California has seen a consistent and significant increase in its minimum wage over the past decade. In 2014, the state’s minimum wage was $9.00 an hour. Today, it’s set at $16 an hour, rising to $20 an hour for fast food workers. For some business owners, this increase has forced difficult decisions.

A Fosters Freeze outlet in Lemoore shut down on April 1, leaving its workers without jobs. Its owner, Loren Wright, said in a text to KMPH that the substantial rise in minimum wage has made it challenging for small businesses to stay afloat.

Lawrence Cheng, whose family owns seven Wendy’s locations south of Los Angeles, admitted to cutting his staff’s hours due to the minimum wage increase.

“We kind of just cut where we can,” Cheng told the Associated Press. “I schedule one less person, and then I come in for that time that I didn’t schedule and I work that hour.”

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However, there are alternative economic theories, such as the efficiency wage theory, which argue that higher minimum wages can boost worker productivity and reduce turnover, as better-compensated employees may be more motivated and loyal. Additionally, increased wages can boost consumer spending, as low-income workers have more disposable income, potentially stimulating economic growth.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.



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A fast-growing wildfire in windy Southern California triggers evacuations

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A fast-growing wildfire in windy Southern California triggers evacuations


RIVERSIDE, Calif. — A smoky and fast-growing wildfire Friday in windy Southern California has prompted multiple evacuation orders and warnings.

The Springs Fire broke out at around 11 a.m. Friday and by the evening had grown to about 5.47 square miles (14.17 square kilometers), with fire crews starting to contain it. The cause of the fire east of Moreno Valley in Riverside County is under investigation. It was not immediately known how many households are under evacuation warnings or orders.

The fire was burning in a populated — but not densely so — unincorporated part of Riverside County, in a recreational area near the city of Moreno Valley, which has a population of roughly 200,000. The city is 10 miles (16 kilometers) southeast of Riverside and 64 miles (103 kilometers) east of Los Angeles.

Springs Fire In Moreno Valley Explodes To Burn Over 3,500 Acres
A firefighting aircraft sprays red flame retardant at the site of the Springs Fire, on Friday.Qian Weizhong / VCG via Getty Images

“It’s windy out there,” said Maggie Cline De La Rosa, a public information officer for the California Department of Forestry and Fire Protection in Riverside County.

Alex Izaguirre, a spokesperson for the Cal Fire Riverside County, said the wind is “spreading the smoke,” prompting concerned calls from residents in neighboring cities who can see and smell the smoke.

The National Weather Service issued a wind advisory for San Bernardino and Riverside County valleys through Saturday afternoon, with gusts of up to 50 mph (80 kph) expected.

“Tree limbs could be blown down and a few power outages may result,” the advisory read.

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Doctors, nurses arrested in Southern California health care fraud investigation

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Doctors, nurses arrested in Southern California health care fraud investigation


LOS ANGELES — The U.S. Department of Justice on Thursday announced what they called a major health care fraud takedown throughout Southern California, which included the arrest of doctors and nurses.

First Assistant U.S. Attorney Bill Essayli was joined during a press conference by several law enforcement agencies including the FBI, and Dr. Mehmet Oz, head of the Centers for Medicare and Medicaid Services.

They said they served a series of search and arrest warrants throughout the region, from Covina to Lakewood in Los Angeles County. Eight people were arrested and more than a dozen are being charged for suspected health fraud.

They also mentioned fraudulent hospice care.

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“These defendants recruited beneficiaries who were not terminally ill, and paid them to pose as patients receiving hospice care. Medicare then paid millions of dollars – hundreds of millions of dollars – on false and fraudulent claims submitted by fraudsters,” said Essayli.

Among those arrested were a Covina couple. Prosecutors said 66-year-old psychologist Gladwin Gill and his wife, Amelou Gill, a registered nurse, operated a fraudulent hospice business out of Glendale.

“This particular hospice submitted more than $5.2 million in fraudulent claims, and Medicare actually paid out more than $4 million,” Essayli said.

Gill’s attorney told our sister station, ABC7 Eyewitness News in Los Angeles, he denies the allegations and looks forward to his day in court.

Oz announced a broader review of hospice providers in the state.

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“We’re going to review every single hospice in California to make sure that they’re all appropriate, and we hope to do that expeditiously. We’ll do it this year,” Oz said.

During the news conference, federal authorities were questioned about a video California Gov. Gavin Newsom said in January his office was reviewing. In that video, Oz, who is Turkish American, was shown standing in front of an Armenian-owned bakery in Van Nuys while alleging widespread fraud in the area.

Essayli confirmed that none of the defendants named Thursday were connected to that video. Oz responded to outcry that his accusations, which the business owner denounced as false, were discriminatory.

“I was stating the facts as they’ve been explained to me, and we have a lot of evidence of where the fraud is, just looking at the numbers,” Oz said.

Oz did not provide any evidence against a specific business in connection to that video. He suggested that half of Los Angeles County hospice care facilities are fraudulent, pointing to survival percentages as evidence.

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“World experts at CMS say if you’ve got 100% or near survival, certainly if you’ve got a survival over 50% for population that’s supposed to have passed in six months, you’ve got a problem,” he said.

Newsom responded to accusations that California had not done enough to address hospice fraud, saying in part, “The Trump Administration – home to the biggest fraudsters on Earth – is trying to blame California for issues with THEIR federal programs.”

His press office said the state has taken action for years, including suspending more than 280 licenses and banning new ones.

Copyright © 2026 KABC Television, LLC. All rights reserved.



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California law allowing people to cook, sell food from homes getting statewide push

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California law allowing people to cook, sell food from homes getting statewide push


A home-based food movement has been heating up in California, with home cooks turning their beloved family recipes into small businesses. 

When most people get laid off, they update their résumés. James Houlahan preheated his oven.

“It’s pretty brutal, and since nobody’s hiring, I just figured I need to make a job for myself,” he said.

So the San Francisco Bay Area resident went back to a family recipe and decided to take a risk, with a whisk. He started making pavlovas, a light, meringue-based Australian dessert, crisp on the outside and soft in the middle.

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“It’s something my mom and I always joked about whenever we’d bring a pav to a party, this thing kills,” Houlahan said. “So we figured, someone’s gotta make a business out of this.”

So he did, out of his own kitchen in Alameda. 

And that’s not a loophole. A 2019 law called MEHKO, or Microenterprise Home Kitchen Operation, allows people to cook and sell food right out of their homes. Since then, more than 1,000 of these home kitchens have opened across California, operating under a growing but still patchwork system.

There are rules: food must be made from scratch and sold the same day. Not every county is on board, but there is now a push to expand it statewide.

Roya Bagheri, the executive director of The Cook Alliance, the nonprofit behind MEHKO, said the law is gaining momentum across the country as other states consider their own versions. 

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“The cost of getting something like a food truck or a brick and mortar restaurant is so high, this creates an access to enter the food industry,” she said.

A study by the group showed more than a third of home kitchen operators have used MEHKO as a stepping stone into something bigger.

But for some, the law is still a little undercooked. Jot Condie, president and CEO of the California Restaurant Association, warned that some counties may not have the resources to take it on.

“If they don’t have the budget, there may not be a rigorous inspection procedure, and that is a huge concern for us,” Condie said.

As for Houlahan, he’s betting on his own kitchen and his mother’s name: Marianne’s Pavlovas. And his customers, like Flora Tso, are already sold.

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“Nowadays it just gives us more choice,” she said.



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