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Nearly all California fast food restaurants hiked prices after state state’s $20 minimum wage: survey

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Nearly all California fast food restaurants hiked prices after state state’s  minimum wage: survey


A whopping 98% of California fast food restaurants hiked menu prices and nearly 90% slashed employee hours in response to the state’s new $20-an-hour minimum wage law, according to a new survey.

The study by the Employment Policies Institute, a fiscally conservative, non-profit think tank, polled 182 fast food restaurant operators throughout the Golden State about the ramifications of the law, which was signed by Democratic Gov. Gavin Newsom and went into effect on April 1.

Conducted in June and July, the survey also found that not only had nearly all the restaurants raised their prices but that 93% plan to do so again next year. The study also found that 87% anticipate cutting employee hours within the next 12 months, a small drop from the 89% who said they chopped hours this year.

California’s new $20-an-hour minimum wage law has forced fast food companies to raise menu prices. AP

Nearly three in four — 73% — fast food locations reported that they have reduced employee shift pick-up or overtime opportunities, while 70% have either cut staff or consolidated positions.

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“Even before the $20 wage went into effect, fast food restaurants made it clear they would not be able to survive. Now after just a few months, the policy has been a disaster, killing jobs and shuttering restaurants,” said EPI’s research director Rebekah Paxton.

Meanwhile, 67% of respondents said the new law will cost their restaurant at least $100,000 per location, while 26% expected a $200,000 hit to their bottom line at each of site.

When asked if the new minimum wage law would make them think twice about expanding in California, 73% said it would make them “significantly less likely” to grow in the state.

Nearly three in four — 74% — said there is a greater likelihood that they would shut their restaurants down, the survey found.

The push for higher wages led several major chains — including McDonald’s, Burger King, and even low-cost favorite In-N-Out Burger – to raise prices to or cut hours to offset higher labor costs.

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Others, like beloved Tex-Mex chain Rubio’s California Grill shuttered 48 locations, citing the “rising cost of doing business” 

A spokesperson for Gov. Gavin Newsom told The Post: “This is a bogus online survey conducted by a DC lobbying firm that’s funded by corporate restaurant chains — all to protect their profits.”

“Federal government data shows the actual facts here — fast food jobs have increased every month this year, including since California raised the minimum wage for workers,” the spokesperson said.

Fast food locations say they have had to cut back on staff as a result of the new law. Getty Images

Last week, fast food workers in the state asked for another minimum wage increase.

The California Fast Food Workers Union — a branch of the Service Employees International Union (SEIU) — released a new list of demands at the first-ever meeting of the state’s Fast Food Council.

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The union is asking that wages for workers be raised to $20.70 per hour by Jan. 1, 2025, “to keep up with the rising cost of living,” the SEIU released in a statement to the outlet.

The $20-an-hour minimum wage law went into effect on April 1. AP

As a result of the law, visits to popular chains such as McDonald’s, Wendy’s and Burger King plunged.

Since April 1, foot traffic at Burger King fell 3.86%, while Wendy’s was down 3.24% and McDonald’s slipped 2.5%, according to a report by analytics firm Placer.ai.

In-N-Out Burger saw 2.59% fewer customers while Jack in the Box visits were down 0.8%.

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Two California students swept out to sea and drowned while napping on beach

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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.

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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”.

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“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.”



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Democrat Aisha Wahab advances in California special election to replace former US Rep. Eric Swalwell

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Democrat Aisha Wahab advances in California special election to replace former US Rep. Eric Swalwell


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. 

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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.

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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. 

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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.

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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.

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Swalwell has repeatedly denied the accusations, but he said it would be unfair to his constituents to remain in Congress. 

California PoliticsElectionEric Swalwell



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One of the 8 people killed in B-52 crash at California base had just welcomed new baby

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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.

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Jeromy Smith.
Jeromy Smith.via LinkedIn

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.

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“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.

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“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.”



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