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The astonishing number of fast food jobs lost – and restaurants shut – because of California’s new $20-an-hour minimum wage

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The astonishing number of fast food jobs lost – and restaurants shut – because of California’s new -an-hour minimum wage


Fast food chains in California are slashing jobs – as a way to cut costs after the minimum wage in the state was hiked to $20-an-hour. 

Almost 10,000 positions across chains from Pizza Hut to Burger King have been cut since the law came into effect on April 1, according to a report from a trade group in the state. 

On top of that, chains have been shuttering restaurants – including beloved Mexican chain Rubio’s Coastal Grill, which this week filed for Chapter 11 bankruptcy and closed 48 locations in the state.  

The California Business and Industrial Alliance (CABIA) slammed Governor Gavin Newsom was for pushing the law through, which has also meant businesses in the state have had to raise prices.   

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To highlight the impact of the law, the trade group created out an advert in Thursday’s edition of USA Today with mock ‘obituaries’ of popular brands.

California Governor Gavin Newsom signed the fast-food bill surrounded by workers at the SEIU Local 721 in Los Angeles on September 28, 2023

The tongue-in-cheek advert, titled ‘In Memoriam: Victims of Newsom’s minimum wage’, highlighted the issues faced by smaller brands including Rubio’s, and fast food giants including Pizza Hut, Burger King, Subway and McDonald’s. 

It features news clips documenting the changes made by companies in response to the wage increase.

This includes raising prices, letting go of workers to cut labor costs – and in some cases shutting down locations. 

One says: ‘A McDonald’s franchisee who owns 18 outposts in California is considering reducing store hours, hiking menu prices and delaying renovations to offset the impact of the state’s $20 hourly minimum wage for fast-food workers.’

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Even before the law was made official earlier this year, chains including Pizza Hut and Round Table let go of more than a thousands delivery workers to brace for the financial ramifications of the change. 

The law signed by Newsom in September last year increases fast-food workers’ minimum wages to $20-an-hour at chains with more than 60 locations in the US.

That is 25 percent more than the standard minimum wage of $16-an-hour in California, which itself came into effect in January.

On a national level, Congress has not touched the minimum wage in decades – it is still $7.25-an-hour. Instead, so-called ‘wage wars’ play out on a state level. 

‘California businesses have been under total attack and total assault for years,’ CABIA president and founder Tom Manzo told Fox Business. 

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‘It’s just another law that puts businesses in further jeopardy.’

He said that officials were living in a ‘fantasyland’ if they think drastic wage increases will actually help workers or businesses. 

‘You can only raise prices so much,’ Manzo told the outlet. ‘And you’re seeing it. People are not going to pay $20 for a Big Mac. It’s not going to happen.’ 

To highlight the impact of the law, the trade group took out a fake ad in Thursday's edition of USA Today with mock 'obituaries' of popular brands

To highlight the impact of the law, the trade group took out a fake ad in Thursday’s edition of USA Today with mock ‘obituaries’ of popular brands

Rubio's Coastal Grill announced it would shut 48 restaurants in the state this week (Pictured: The grand opening of the third Rubio's location in the Pacific Beach neighborhood of San Diego, California in 1986)

Rubio’s Coastal Grill announced it would shut 48 restaurants in the state this week (Pictured: The grand opening of the third Rubio’s location in the Pacific Beach neighborhood of San Diego, California in 1986)

Critics warned that businesses would turn to digital ordering kiosks as a way to cut down on wage costs for staff

Critics warned that businesses would turn to digital ordering kiosks as a way to cut down on wage costs for staff

When the Democrat governor signed the law in 2023, Newsom said the state was getting ‘one step closer to fairer wages, safer and healthier working conditions, and better training by giving hardworking fast food workers a stronger voice and seat at the table.’

But Republican critics claimed the wage hike would simply mean workers are replaced with self-checkouts and ‘robot cooks.’ 

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Harsh Ghai, a Burger King franchisee with 140 restaurants on the West Coast announced in April how he planned to have digital kiosks installed in all his locations in two months. 

Until the wage hike, he planned to roll them out over the next five to ten years. 

‘We have kiosks in probably about 25 percent of our restaurants today,’ Ghai told Business Insider at the time.

‘However, the other 75 percent are going to have kiosks in the next probably 30 to 60 days.’



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California man beheaded his 1-year-old son with a knife, authorities say

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California man beheaded his 1-year-old son with a knife, authorities say


SACRAMENTO, Calif. — A man has been arrested on suspicion of beheading his 1-year-old son, Northern California authorities said.

The Sacramento County Sheriff’s Office said in a statement Friday that deputies responding to an early morning family disturbance call found a woman outside a home who told deputies that her husband Andrey Demskiy, 28, assaulted her and her mother.

Deputies forced their way into the house in northern Sacramento County when they learned Demskiy was inside with the boy. As they took him into custody, they found a “severed child’s head” in the bedroom where Demskiy was detained.

Detectives said Demskiy used a knife to behead his son after his wife and mother-in-law left the house, according to the statement. He was in custody and ineligible for bail, and was scheduled to appear in court Tuesday.

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The sheriff’s department and the county public defenders office did not respond to emails seeking information on whether Demskiy had an attorney who could speak on his behalf.



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Protests Swept California Campuses Last Year. Schools Are Now Blocking Them | KQED

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Protests Swept California Campuses Last Year. Schools Are Now Blocking Them | KQED


At UC Santa Cruz, police arrested one student who was using a megaphone during a demonstration on Oct. 7, according to an eyewitness who spoke to LookOut Santa Cruz. Santa Cruz County Sheriff’s Office public arrest reports show one person was arrested on the Santa Cruz campus for obstruction of a public officer and battery without injury that day.

While no arrests were made, Pomona College has suspended 12 students for the remainder of the 2024–25 academic year following an Oct. 7 demonstration in which they entered, damaged and vandalized a restricted building, according to the student newspaper. The college also banned dozens of students from the four other campuses of the Claremont Colleges, a consortium that includes Pomona.

Private colleges have implemented their own policy changes. Pomona College now requires students and faculty to swipe their ID cards to enter academic buildings. Since last semester, students and visitors entering USC are also required to show a school or photo ID.

Some students are still facing charges from last year’s protests

Few charges have been filed after UCLA’s encampment made headlines in April when counterprotesters led an attack on encampment protesters while law enforcement did not intervene for several hours. The following day, 254 people were arrested on charges related to the protest encampment. In October, two additional people were also arrested for participating in the counter-protester violence.

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The Los Angeles County District Attorney’s office is pursuing three felony cases against individuals arrested at UCLA in relation to violence during last spring’s protests.

Meanwhile, the city attorney’s office is reviewing 93 misdemeanor cases from USC and 210 from UCLA, according to information it provided to CalMatters last month.

Lilyan Zwirzina, a junior at Cal Poly Humboldt, was among the students arrested in the early morning of April 30 following protesters occupying a campus building and ignoring orders to disperse from the university. Law enforcement took her to Humboldt County Correctional Facility, where she faced four misdemeanor charges, including resisting arrest. Zwirzina thought she’d have to cancel her study abroad semester, which conflicted with the court date she was given.

“I was pretty frustrated and kind of freaked out,” Zwirzina said. Authorities dropped the charges against her in July.

Pro-Palestinian protesters demand police officers go home during a protest outside of Siemens Hall at Cal Poly Humboldt in Arcata on April 22, 2024. (Mark McKenna/CalMatters)

The Humboldt County District Attorney’s Office didn’t pursue charges against 27 of the 39 people arrested, citing insufficient evidence. The 12 remaining cases were referred to the Cal Poly Humboldt Police Department for investigation. Those cases remain under investigation, according to the university.

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For 13 people, including students, arrested at Stanford University in June, the Santa Clara County District Attorney Jeff Rosen has not pressed charges as of Nov. 20, according to information his office provided CalMatters.

Elsewhere across the state, some district attorneys are pursuing misdemeanor and felony charges against student protesters. Orange County District Attorney Todd Spitzer is pursuing misdemeanor charges against 50 people, including two UCI professors, a teaching assistant, and 26 students, stemming from a protest at UC Irvine on Oct. 22, 2023. Charges include failure to disperse, resisting arrest and vandalism.

At Pomona College, 19 students were arrested on April 5 on charges of trespassing after some protesters entered and refused to leave an administrative building. Students arrested either had their cases dismissed or have accepted community service in lieu of further legal action. James Gutierrez, the attorney representing the arrested students, said he asked that the college drop charges against its students, citing their right to protest the use of paid tuition dollars.

“They are righteously demanding that their colleges, the ones they pay tuition to and housing fees and pour a lot of money into, that that university or college stop investing in companies that are directly supporting this genocide and indirectly supporting it,” he said.

Students fight back against campus protest policies

As administrators face the challenge of applying protest policies more uniformly and swiftly, the truer test of California public higher education institutions’ protest rules will be playing out in court.

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In one already resolved case, UC leadership agreed in August to comply with a court order requiring the campus to end programs or events that exclude Jewish students. A federal judge ruled some Jewish students in support of Israel who were blocked from entering the encampment had their religious liberties violated — though some Jewish students did participate in UCLA’s protest encampment.

Now, students have filed at least two lawsuits against their campuses and the UC system for violating their rights while ending student encampments last spring. In September, ACLU NorCal filed suits against the UC and UC Santa Cruz for not providing students due process when they immediately barred arrested students from returning to campus.

“Those students should have gotten a hearing, an opportunity to defend themselves or to explain themselves, and the school would have shown evidence of why they created a risk of disturbance on campus,” Chessie Thacher, senior staff attorney at ACLU of Northern California, said.

UC Santa Cruz spokesperson Scott Hernandez-Jason said the university “appreciates the court’s careful deliberation” and that the university “is committed to upholding the right to free expression while also protecting the safety of its campus community.”

In October, ACLU SoCal filed lawsuits on behalf of two students and two faculty members against the UC and UCLA, alleging the actions the university took to break down the encampment violated their free speech rights.

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UCLA spokesperson Ricardo Vazquez told CalMatters via email that the university would respond in court and that UCLA “fully supports community members expressing their First Amendment rights in ways that do not violate the law, our policies, jeopardize community safety, or disrupt the functioning of the university.”

“The encampment that arose on campus this spring became a focal point for violence, a disruption to campus, and was in violation of the law,” Vazquez said in the email statement. “These conditions necessitated its removal.”





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Southern California hiring in November runs 47% below average

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Southern California hiring in November runs 47% below average


A record 8.11 million at work in Los Angeles, Orange, Riverside and San Bernardino counties in November.

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