California
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.
Don’t miss
-
Car insurance premiums in America are through the roof — and only getting worse. But 5 minutes could have you paying as little as $29/month
-
Commercial real estate has beaten the stock market for 25 years — but only the super rich could buy in. Here’s how even ordinary investors can become the landlord of Walmart, Whole Foods or Kroger
-
These 5 magic money moves will boost you up America’s net worth ladder in 2024 — and you can complete each step within minutes. Here’s how
“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.
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.
“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.
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.
“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
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.”
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.
What to read next
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
California
Two California students swept out to sea and drowned while napping on beach
Two college students died after being swept out to sea from a Santa Cruz beach as massive waves and dangerous rip currents inundated the California coastline in recent days.
Authorities confirmed this week that Harshita Nair, 21, and Mahial Sran, 20, were killed after the sudden swell at a Santa Cruz beach last Wednesday. Nair died last week while Sran died in a local hospital on Sunday.
The incident came a day after a five-year-old girl in southern California was killed when turbulent waters swept the child, who was walking with her mother and brother, out to sea from the shore of Treasure Island Beach in Orange county.
Authorities have urged people to take precautions while visiting beaches throughout the state as the coast faced treacherous conditions with the continuing king tides, a non-scientific term describing the highest tides of the year.
On 10 June, local authorities in Santa Cruz responded to a beach for an ocean rescue of two women who had been pulled into the water. A team of about eight rescue swimmers helped pull Nair and Sran from the water, and they were taken to local hospitals by ambulance and helicopters.
It was the fifth rescue firefighters had undertaken on that mile-long portion of coastline from Yellow Bank Beach to Bonny Doon Beach, the San Mateo-Santa Cruz unit of Cal Fire said in a statement online.
Kyle Breton, a Santa Cruz county volunteer fire captain, said in a video that officials believed the two friends were napping near a rock archway between two beaches when the water came in and swept them out.
Sran was a student at San Jose State University and Nair attended the University of California, Berkeley, the universities confirmed to media outlets.
In an obituary, Nair’s family remembered her as a “cherished sister, granddaughter and a treasured friend” who “always found a way to lift others up”.
“Harshita was truly full of life – radiating energy, warmth and joy wherever she went. She had a deep love for adventure and embraced every moment with enthusiasm and courage. Her spirit was contagious, her laughter uplifting and her presence comforting.”
California
Democrat Aisha Wahab advances in California special election to replace former US Rep. Eric Swalwell
ALAMEDA COUNTY, Calif. – Democratic state lawmaker Aisha Wahab advanced Tuesday to the special general election in California for the U.S. House seat vacated by Rep. Eric Swalwell after he resigned from Congress amid allegations of sexual assault.
Headed to runoff
Wahab, a state senator who focused her campaign message on reducing housing costs, goes on to the Aug. 18 runoff, which will determine who will fill the remainder of Swalwell’s term through January.
The 14th District includes East Bay cities such as Fremont, Hayward and Livermore. It heavily favors Democrats, and Swalwell typically beat Republican challengers by wide vote margins.
Also among the 11 names on the ballot was fellow Democrat Melissa Hernandez, a Bay Area Rapid Transit director and former mayor of the East Bay city of Dublin.
Branded as progressive
She and Wahab represent different wings of the party that have been battling in numerous states this primary season. The more progressive Wahab proposed combating high costs by expanding the social safety net and taking on “corporate profiteering.” Hernandez, considered more moderate, emphasized job growth and supporting small businesses.
Others in the race were Democratic businessperson Rakhi Israni Singh and Republicans Wendy Huang, a real estate investor, and Dena Maldonado, who runs a small flower business.
Separate from the special election, a regular primary was held June 2 for a full term in the seat beginning in January, with many of the same candidates who were on Tuesday’s ballot.
Multiple elections
Wahab and Hernandez were the top two vote-getters June 2 and advanced to the general election in November. If one of them comes out on top in the special election, their hope is that serving in the office for a few months this summer and fall could provide a boost in visibility and some job experience they can tout as they campaign for the full term.
Swalwell held the seat for seven terms before resigning in April – and also dropping out of this year’s governor’s race – after the San Francisco Chronicle reported allegations that he sexually assaulted a woman twice, including when she worked for him.
CNN later reported that other women accused him of sending inappropriate messages and nude photos.
Swalwell has repeatedly denied the accusations, but he said it would be unfair to his constituents to remain in Congress.
California
One of the 8 people killed in B-52 crash at California base had just welcomed new baby
One of the eight people who died in the crash of an Air Force B-52 Stratofortress bomber in California on Monday had recently welcomed a new son, his wife said.
“My husband just went back to work. He was there for just a week,” Lauren Smith said about her husband, Jeromy Smith.
The Department of Defense and Edwards Air Force Base have not released the names of those killed in Monday’s crash, which happened shortly after the plane took off around 11:20 a.m.
Members of the military, military civilians and government contractors were on board, officials have said. Boeing confirmed that two of its employees had been killed.
The cause of the crash remains under investigation. The aircraft was on a routine test mission supporting a “radar modernization program,” Air Force Col. James Hayes told reporters Monday.
An initial gathering of facts can take up to 30 days, and then an accident investigation board will review the crash, Hayes said. It can take six months before the information is gathered and released to next-of-kin and the public, he said.
Jeromy Smith was a civilian flight test engineer for the Department of Defense and worked on projects at Edwards Air Force Base for 10 years, Lauren Smith said.
The Smiths have two children: Fletcher, 2 years old, and Fallon, who was born four months ago.
“We did not see this coming,” she said.
Jeromy Smith had received the Aerial Achievement Medal for flying medium- to high-risk sorties, and he was proud of that, Lauren Smith said.
But for the six years that Lauren Smith has been with her husband, she said she never felt like things were not safe.
Monday’s flight had originally been scheduled for Friday but had been pushed back, she said.
“They go through tons of safety things before they even take off. And I know specifically on Friday they had — they were gonna fly on Friday, and they just kept pushing it back and pushing it back,” she said.
“And I don’t think that plane was ready to take off, and I’m so sad it did,” she said.
The Department of Defense did not immediately respond to a request for comment Tuesday.
Lauren Smith said that the last text she sent her husband was “I love you.”
She became aware of the crash through social media and learned that Jeromy Smith had died when people from his work showed up at her door at 6 p.m. Monday, she said.
“He worked really hard for this country, and he loved this country so much,” she said. “I know he is just a speck in this world of people, but he truly, truly loved this country, and he would do anything for this country.”
“And he left a legacy with his kids,” she said. “And I hope that they — they know that their father was a hero, and that he loved them very much.”
-
Detroit, MI8 minutes agoDetroit hosts 7th annual Juneteenth Celebration of Freedom
-
San Francisco, CA18 minutes agoDriver of bullet-riddled car flees North Bay deputies over Golden Gate Bridge
-
Dallas, TX23 minutes agoCroatia fans rock cowboy style in Dallas parade ahead of match with England
-
Miami, FL30 minutes agoThe Shade Room (@theshaderoom)
-
Boston, MA33 minutes agoBoston braces for Sail250: 60 tall ships and 4 million visitors – The Boston Globe
-
Denver, CO38 minutes agoMecca Sports Bar in Denver allowed to continue operations after settlement agreement
-
Seattle, WA45 minutes agoAbout the Army helicopters over north West Seattle
-
San Diego, CA48 minutes ago‘Great feeling’ for Iraqis in El Cajon as they celebrate competing in first World Cup since 1986