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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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Newsom to impose 100% tax on California payees of Trump’s $1.8bn fund

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Newsom to impose 100% tax on California payees of Trump’s .8bn fund


California governor Gavin Newsom is looking to thwart Donald Trump’s $1.776bn “anti-weaponization fund” by imposing a 100% tax on any payout received by state residents.

In May, the Department of Justice (DoJ) announced a fund to compensate alleged “victims of lawfare and weaponization”. It’s unclear who qualifies under this category.

The fund was the product of a settlement reached between Trump and the Internal Revenue Service (IRS) – the agency the president sued over his leaked tax returns.

Critics, including Newsom, have slammed the fund as a “boondoggle” designed to divert money to Trump’s allies. Speculation has swirled that its benefactors could include the individuals who were arrested in the 6 January 2021 siege of the US Capitol. The Trump administration has described the rioters as patriots and since pardoned many who were charged in relation to the attack.

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“People who assault cops and overthrow democracy don’t deserve a taxpayer-funded payday,” Newsom wrote in a Wednesday post to X, after announcing his plan at a news conference.

Five people appointed by the US attorney general will preside over the $1.776bn, which will be funneled from a fund typically used to pay court judgments.

Todd Blanche, the acting US attorney general, characterized the fund as an avenue “to make right the wrongs that were previously done”. Quarterly reports on who has received monetary relief and in what amount will be sent to the attorney general. Claims will not be processed after 1 December 2028, at which point any remaining amount will be returned to the federal government, according to the DoJ.

The DoJ did not immediately respond to a request for comment on how it would address Newsom’s proposed tax.

It’s the latest in a longstanding bitter feud between Newsom and Trump.

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The two politicians have often traded jabs in the press and over social media. They are at odds on a number of issues in the Golden state including the federal deployment of ICE agents, how healthcare fraud has been handled and election integrity.



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Opinion | Our house burned down but our mortgage didn’t. California fire survivors need time

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Opinion | Our house burned down but our mortgage didn’t. California fire survivors need time


By Rachel Jonas and Robert Fagnani, Special for CalMatters

The aftermath of the Palisades Fire, as clean-ups and infrastructure repairs begin, in Pacific Palisades, on Jan. 14, 2025. Photo by Ted Soqui for CalMatters

This commentary was originally published by CalMatters. Sign up for their newsletters.

Guest Commentary written by

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We were supposed to celebrate our younger son’s first birthday in our backyard on January 11th, 2025. Instead, four days before his party, we watched the Palisades fire take our home. We’d packed what we could, put our kids in the car and drove to Tennessee to live with family because we had nowhere else to go.

Our house is gone. Our older son’s preschool is gone. The library, the restaurants, the small routines that made up a life are all gone. What remains is a mortgage on a property that no longer exists and a rebuilding process that every expert we’ve spoken to says will take two to four years, minimum.

We did not expect to become advocates. But in the months after the fire, we kept running into the same impossible questions from other families — questions about forbearance, credit and what their mortgage servicer was actually required to do. Nobody had clear answers, so we founded Disaster Mortgage Relief and have spent the past year listening to hundreds of families across the Palisades and Altadena navigate a financial system that was simply not built for what we are living through.

That experience is what brings us to Assembly Bill 1847. The California Bankers Association recently argued that this bill — which would extend and strengthen mortgage protections established under last year’s fire emergency mortgage relief law, AB 238 — could end up restricting access to credit. 

We want to engage with that, because we think it gets the situation almost entirely backwards.

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AB 238 gave people whose homes burned up to 12 months of mortgage forbearance. But the rebuilding timeline in the Palisades and Altadena is not 12 months. Debris removal, utility restoration, insurance disputes, permit approvals, contractor shortages and construction inflation have made this a multi-year process for virtually everyone we work with. 

The original forbearance framework was built around a recovery timeline that does not exist in reality. Now that fire survivors’ forbearance periods are expiring, we are watching the consequences in real time: Families who were current on their mortgages before the January 2025 fire — who followed every rule — are seeing their credit scores fall by 200, 300, even 400 points. 

Some are being pushed toward foreclosure. Some are being handed balloon payments of $100,000 or more, due at the exact moment they are trying to finance construction.

This is not a story about irresponsible borrowers. These are teachers, small business owners, young families who made these neighborhoods what they were. Most still desperately want to come home. But the financial pressure is forcing many of them out for good.

We understand lenders need predictable rules and functioning credit markets. California cannot solve one crisis by creating another. But the greater threat to future lending is not temporary forbearance; it is mass borrower failure, collapsing credit, abandoned rebuilds and neighborhoods that never recover.

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AB 1847 does not forgive debt. It does not eliminate lender rights. It does not tell banks they won’t be repaid. It allows payments to be deferred during rebuilding and moved to the loan’s back end. 

The CARES Act, which gave borrowers of federally-backed mortgages up to 360 days’ relief during the COVID-19 pandemic, demonstrated that similar structures were operationally feasible on a national scale. 

For many families, freeing up two or three years of principal and interest and applying that money to construction is the difference between rebuilding and permanently leaving. It requires no taxpayer money; it simply restructures debt that already exists so families have a realistic chance to come home.

In our case, my family is still in Tennessee, saving every dime we can to hopefully afford to rebuild the home we lost.

Climate events are no longer temporary and localized. They destroy entire communities at once and displace families for years. The financial infrastructure around homeownership needs to catch up to that reality.

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The question before California is simple: when disaster survivors are trapped between a destroyed home and a mortgage system that no longer matches modern recovery, will we force families into financial collapse or adapt the system to the world we now live in?

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.



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Tesla driver infamous for Southern California road rage attacks sentenced in Hawaii case

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Tesla driver infamous for Southern California road rage attacks sentenced in Hawaii case


A Tesla driver infamous for a series of road rage attacks caught on camera in Southern California has been sentenced to seven years in prison after he was convicted in a similar case in Hawaii.

Videos from 2023 that went viral show a pipe-wielding man getting out of his Tesla and striking vehicles on Southern California roads.

Nathanial Radimak was arrested early that year for a series of attacks, was convicted in two road rage incidents and served time behind bars in California. Now he’s headed to prison again in Hawaii for a similar attack.

  • Tesla road rage driver appears in Hawaii court

Two of Radmark’s Los Angeles-area victims reacted to the 40-year-old’s seven-year prison sentence, longer than even the prosecution requested.

“I feel that justice has finally been served,” said victim Beth Lamprecht during a press conference Tuesday.

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“For years, there were pleas to keep this dangerous individual from hurting others. While those warnings went unheeded, today we finally have accountability,” she continued.

Those victims and attorney Gloria Allred argued that Radimak should not have been free in the first place.

He was sentenced to five years in prison in Los Angeles County and released after a year, according to the Department of Corrections.

Allred said he received credit for time served while awaiting sentencing and good behavior.

There are reports that Allred raised on Tuesday that Radimak was released early from California custody because of overcrowding.

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He committed this latest attack in Hawaii while still on parole.

“It highlights a painful reality, one’s individual criminal behavior can impact communities across multiple cities and multiple states,” victim Vivian Romero said.

In the Hawaii attack, which was caught on camera, Radimak was seen zipping past a mother and 18-year-old daughter trying to parallel park.

The daughter yelled “slow down” out of concern. The suspect was then seen turning around, approaching their car, punching the 18-year-old and, when mom Diane Ung gets out furious, he punches her in the eye.

He pleaded no contest to two assault charges.

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“For the first time in a long time, we all can breathe a little easier knowing that he will have time he needs in a space away from the general public,” Lamprecht said.

At the sentencing hearing in Hawaii, Radimak said he regrets the assault there and takes accountability and said he needs treatment. His attorney argued he has a long history of undiagnosed schizophrenia and other mental illnesses and struggled with side effects from his medications.

KTLA has reached out to the Department of Corrections and the Los Angeles County District Attorney to see if they will try to extradite Radimak for parole violation.



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