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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

Former California doctor sentenced in Matthew Perry’s overdose death

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Former California doctor sentenced in Matthew Perry’s overdose death


LOS ANGELES — A former California doctor was sentenced to 8 months of home detention and 3 years of supervised release Tuesday after pleading guilty to ketamine distribution in connection with the fatal overdose of “Friends” star Matthew Perry.

Mark Chavez pleaded guilty in 2024 to one count of conspiring to distribute ketamine to Perry, who died at 54. Chavez appeared Tuesday before U.S. District Judge Sherilyn Peace Garnett in Los Angeles. He faced up to 10 years in prison.

He will also be required to complete 300 hours of community service and pay a $100 special assessment to the U.S. government.

“My heart goes out to the Perry family,” Chavez said outside of court after his sentencing.

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Zach Brooks, a member of Chavez’s legal team, said Tuesday: “what occurred in this case was a profound departure from the life he had lived up to that point. The consequences have been severe and permanent. Mr. Chavez has lost his career, his livelihood, and professional identity that he has worked for decades to develop.”

“Looking forward, Mr. Chavez understands that accountability does not end with this sentence. He’s committed to using the rest of his life to contribute positively, to support others and to ensure that nothing like this ever happens again,” Brooks said. “While he cannot undo what occurred, he can choose how he lives his life from this moment.”

Chavez was one of five people charged in connection with Perry’s death. The TV star died of an accidental overdose and was found dead in a hot tub at his Los Angeles home in October 2023.

Chavez’s lawyer, Matthew Binninger, has previously said his client was “incredibly remorseful” and “accepting responsibility” for his patient’s overdose.

Chavez was a licensed physician in San Diego who formerly operated a ketamine clinic. Prosecutors said he sold ketamine to another doctor, Salvador Plasencia, who then distributed it to Perry.

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“I wonder how much this moron will pay,” Plasencia said in a text exchange to Chavez, according to the investigators. “Lets find out.”

Earlier this month, Plasencia was sentenced to two and a half years in federal prison for his involvement in the case.

Chavez wrote “a fraudulent prescription in a patient’s name without her knowledge or consent, and lied to wholesale ketamine distributors to buy additional vials of liquid ketamine that Chavez intended to sell to Plasencia for distribution to Perry,” the indictment in the case said.

In the month before his death, the doctors provided Perry with about 20 vials of ketamine and received some $55,000 in cash, according to federal prosecutors.

Perry was undergoing ketamine infusion therapy to treat depression and anxiety, according to a coroner’s report. However, the levels of ketamine in his body at the time of his death were dangerously high, roughly the same amount used for general anesthesia during surgery. The coroner ruled his death an accident.

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Before his death, Perry was open about his lengthy struggles with opioid addiction and alcohol use disorder, which he chronicled in his 2022 memoir, “Friends, Lovers and the Big Terrible Thing.”

Katie Wall reported from Los Angeles and Daniella Silva reported from New York.

This is a developing story. Please check back for updates.



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California’s first mobile 911 dispatch classroom launches in Fresno

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California’s first mobile 911 dispatch classroom launches in Fresno


A mobile classroom is giving Central Valley students a hands-on look at what it takes to answer 911 calls.

The classroom on wheels is one of only two in the nation, the first in California, and is part of the Fresno Regional Occupational Program’s dispatch pathway.

“Dispatchers are the steady heartbeat of the emergency response,” Fresno County Superintendent of Schools Dr. Michele Cantwell-Copher said during Monday’s ribbon-cutting ceremony.

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California’s first mobile 911 dispatch classroom launches in Fresno (Photo: FOX26 Photojournalist Byron Solorio)

Inside the trailer, students train at real dispatch consoles designed to mimic a live dispatch center.

The program is a partnership with Fresno City College, creating a pipeline from the classroom to dispatch careers.

The curriculum is backed by California POST, or the Commission on Peace Officer Standards and Training, which sets minimum training and certification standards for law enforcement in the state.

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It gives students the opportunity to practice call taking and scenario based decision making in a realistic and interactive setting,

said Michelle D., with POST.

The system uses realistic audio and artificial intelligence to recreate high-pressure simulations.

“If it’s a child that is injured, we can have the child crying in the background, so it really gives them that true, realistic first-hand experience,” said Veronica Cervantes, a Supervising Communications Dispatcher with the Fresno County Sheriff’s Office.

Dispatch supervisors say programs like this one could help address a growing staffing shortage.

More people need to be in this profession. We are hurting for dispatchers

explains Matt Mendes, a Dispatch Supervisor with the Fresno County Sheriff’s Office.

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Officials say the job offers competitive benefits, including a starting salary of about $53,000, overtime opportunities, and the potential to earn six figures over time.



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Feds say they foiled New Year’s Eve terror plot in L.A., Southern California

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Feds say they foiled New Year’s Eve terror plot in L.A., Southern California


A plan to attack several Los Angeles-area businesses on New Year’s Eve was detailed, dangerous and already in motion, authorities said.

But as four people allegedly tied to an anti-government group gathered last week in the Mojave Desert to make and test several test bombs, FBI officials foiled the terror plot.

They had everything they needed to make an operational bomb at that location,” First Assistant U.S. Atty. Bill Essayli said at a news conference Monday morning. “We disrupted this terror plot before buildings were demolished or innocent people were killed.”

The four people were arrested on suspicion of plotting an attack that Essayli called “organized, sophisticated and extremely violent.” They were all tied to a radical faction of the Turtle Island Liberation Front called Order of the Black Lotus, which FBI Assistant Director in Charge Akil Davis called “a violent homegrown anti-government group.”

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Officials wouldn’t say what buildings or businesses were planned to be targeted but Essayli said they were different “logistics centers” similar to ones that Amazon might have.

Officials said they believe that everyone involved in the planned attack has been arrested, though the investigation into the plot remains ongoing.

The four alleged conspirators, Audrey Carroll, Zachary Page, Dante Gaffield and Tina Lai, have been charged with conspiracy and possession of an unregistered destructive device, Essayli said.

“The subjects arrested envisioned planting backpacks with improvised explosive devices to be detonated at multiple locations in Southern California, targeting U.S. companies,” Davis said.

The plans the FBI uncovered also included follow-up attacks after the bombings, which included plans to target ICE agents and vehicles with pipe bombs, Essayli said.

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