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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 $20-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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An uphill battle as Southern California cities try to combat illegal Fourth of July fireworks

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An uphill battle as Southern California cities try to combat illegal Fourth of July fireworks


As the Fourth of July looms each year, Southern California’s police and fire agencies battle a predictable crime: illegal fireworks that will be set off for hours on end, rattling neighborhoods and lighting up the sky. The dangerous effects of the illicit devices are just as predictable, among them injuries, fires, dense smoke and emotional trauma to veterans and others suffering from post-traumatic stress.

To try to get people to stop buying and setting off the illegal devices — from bottle rockets and firecrackers to mortars and aerial shells — local officials for weeks have sent emails, posted on social media and held press conferences, warning of the dangers and cautioning that using them could lead to citations and hefty fines.

On the streets of cities across the region on the Fourth of July, law enforcement will use various strategies to combat the use of such fireworks, with fines and other penalties used as a deterrent. Yet most local officials agree that enforcement is labor-intensive and solving the problem is tricky.

ALSO SEE: July 4th fireworks: New rules, where to watch and tips in Southern California

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“It’s an all hands on deck day for us,” said Huntington Beach police Lt. Thoby Archer said. “We’re stretched thin like every coastal city is.”

Every single Huntington Beach police officer will work on the Fourth of July. according to city officials, when calls for service are expected to dramatically rise

Last year, Huntington Beach dispatchers received more than 700 fireworks-related calls, said Jessica Cuchilla, spokeswoman for the police department. That was an increase of about 250 calls from 2022. To combat the increase, the city, like others, has a phone app to report illegal fireworks activity.

The department also has mapped out neighborhoods and addresses that previously have been a problem in an effort to step up patrols in that area. Letters to residents in those neighborhoods were sent prior to the holiday to warn them of the consequences for illegal fireworks activity, Archer said.

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  • The OCFA holds a press conference in Irvine about Fourth of July safety. A mannequin placed next to a detonated “aerial ball,” shows the potential damage that can be caused when handling illegal fireworks. Sheriff Sgt. Mike Wigginton, pictured, said he has seen first hand how “life changing, and “catastrophic” injuries from fireworks can be. (Photo by Mindy Schauer, Orange County Register/SCNG)

  • Confiscated fireworks were displayed during a press conference at the...

    Confiscated fireworks were displayed during a press conference at the Riverside fire training facility on Tuesday, June 25, 2024, along with a video illustrating the dangers of these illegal explosives. (Photo by Anjali Sharif-Paul, The Sun/SCNG)

  • Sheriff Sgt. Tim Pusztai looks at a table damaged by...

    Sheriff Sgt. Tim Pusztai looks at a table damaged by illegal fireworks during an OCFA press conference in Irvine on on Tuesday, June 25, 2024. An “aerial ball,” placed inside a watermelon was used to show the dangers of handling illegal fireworks. (Photo by Mindy Schauer, Orange County Register/SCNG)

  • Confiscated fireworks were displayed during a press conference at the...

    Confiscated fireworks were displayed during a press conference at the Riverside fire training facility on Tuesday, June 25, 2024, along with a video illustrating the dangers of these illegal explosives. (Photo by Anjali Sharif-Paul, The Sun/SCNG)

  • A mannequin is used by the OCFA in Irvine on...

    A mannequin is used by the OCFA in Irvine on Tuesday, June 25, 2024, to demonstrate what can happen to people who handle illegal fireworks. Sheriff Sgts. Mike Wigginton, left, and Tim Pusztai say they have seen first hand how “life changing and “catastrophic” injuries from fireworks can be. (Photo by Mindy Schauer, Orange County Register/SCNG)

  • The OCFA displays illegal fireworks, including sky rockets with an...

    The OCFA displays illegal fireworks, including sky rockets with an “aerial ball” on top, during a press conference in Irvine on Tuesday, June 25, 2024. They are warning the public about the dangers of setting off illegal fireworks. (Photo by Mindy Schauer, Orange County Register/SCNG)

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  • An aerial mortar illegal firework goes off under the foot...

    An aerial mortar illegal firework goes off under the foot of a mannequin as the Orange County Fire Authority along with the Orange County Sheriff’s Department show the harmful effects illegal fireworks can have on people and property during a demonstration at the OCFA headquarters in Irvine on Tuesday, June 30, 2020. (File photo by Mark Rightmire, Orange County Register/SCNG)

  • Confiscated fireworks were displayed during a press conference at the...

    Confiscated fireworks were displayed during a press conference at the Riverside fire training facility on Tuesday, June 25, 2024, along with a video illustrating the dangers of these illegal explosives. (Photo by Anjali Sharif-Paul, The Sun/SCNG)

Fourth of July house parties increased in the city after the COVID pandemic, which has led to increased firework activity in neighborhoods, the lieutenant said. Any response to a fireworks-related call requires multiple officers.

“Any time someone is going in to potentially cite someone at a party, there’s usually a number of inebriated individuals,” Archer said. “It’s a crowd mentality, so that requires four or more officers to go to a party like that. It’s a huge drain of resources.”

The city’s Fire Department also was preparing by putting together pairs of paramedics to respond to calls. The department was also expecting about double the calls for service, Fire Chief Darrin Witt said.

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“Fortunately, we haven’t had large fires, but we have had over the last couple of years some that have turned into full blown residential fires,” Witt said.

Orange County Sheriff Don Barnes, at a press conference in late June, said his department receives a 200 percent increase in 911 calls on the Fourth of July alone, “especially when it gets to the sundown hours when fireworks start to detonate.”

Huntington Beach first responders are not alone.

In Riverside, city officials team up to form task forces, which head out to patrol the city, said Riverside City Councilman Jim Perry. Those five to seven task force teams include one police officer and one firefighter or one code enforcement officer.

“That’s their sole responsibility,” Perry said. “The exception to that would be if the officer is the closest unit to an emergency call.”

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Agencies in Corona operate the same way sending out similarly assembled task force teams to patrol the city and issue citations, said Cindi Schmitz, a spokeswoman for the city.

“You can imagine, with over 300 calls just on the evening of the Fourth, that both dispatch and first responders are inundated,” Schmitz said.

San Bernardino city police have officers from its Specialized Enforcement Bureau on firework enforcement units and they start their work several weeks in advance of the holiday, looking for those who sell illegal fireworks, including through social media, in order to prevent them from reaching neighborhoods, Capt. Nelson Carrington said. The units also hand out administrative penalties or criminal citations on the Fourth of July.

“We want to be proactive and prevent injuries,” the captain said. “And there have been fires going on. With high temperatures and dry terrain, the last thing we need is a firework landing in that terrain.”

For most cities, the fine for an illegal fireworks citation is $1,000, but in some cities, the fines increase for repeat violators, or officials have increased the base amounts. In 2021, the Corona City Council voted to increase the fine to up to $5,000 for an illegal fireworks violation.

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In Murrieta and Pasadena, that amount could run as high as $50,000, officials said.

The fines from those citations go into the general fund of the city’s budget, officials from Riverside and Huntington Beach said.

But enforcement isn’t as easy as it may seem. In order to hand out a citation, a police officer, arson investigator or code enforcement officer has to personally see someone lighting the explosive, officials said.

In addition, if the culprit does not live at the home where the firework was lit, the homeowner could receive a citation for allowing the activity to take place on property, officials said.

To help, many cities allow residents to report illegal firework activity through apps, websites and phone numbers.

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Still, those reports don’t always lead to punishments.

“Many times, by the time officers get there a person has lit the firework and has already gone into their home,” Cuchilla, the Huntington Beach police spokeswoman, said.

“You can see an aerial firework going off a couple blocks away and by the time you get there you’re unable to determine who lit the firework,” said Carrington with San Bernardino police.

Riverside has seen a decrease in the number of citations issued over the past three years. Police handed out 144 citations, with $144,000 in fines, in 2019 and 108 citations in 2020, according to the Riverside City Fire Department. Those totals dropped significantly in 2021, to 31 citations and down to 28 in 2023. Officer Ryan Railsback, spokesman for the city’s police department, said staffing levels went down after the COVID pandemic, meaning less enforcement.

Pasadena also saw significant decreases starting in 2021, going from 64 citations in 2020 to 23 the following year, according to data provided by the city. Lisa Derderian, a city spokeswoman, said “enforcement actions were significantly increased” in 2021 and “the effectiveness of this enforcement is evident in the decline in calls for service and subsequent citations issued.”

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The department handed out nine citations in 2022, but went back up to 23 in 2023. The agency did not have estimates on the amount of fines it handed out.

In 2022, Corona doled out $33,000 in fines, more than double the year prior, city data provided by Schmitz showed. However, in 2023, the total decreased dramatically to $5,500 worth of fines.

“We continue with the same approach, but fine-tune and build on what is working,” Schmitz said, adding that the city provides education to the community before the holiday and uses the task force approach for enforcement on the holiday.

However, unlike some other cities, Schmitz said the department has not gleaned any trends in regards to fireworks enforcement from their data, though she did say calls for service are slowly decreasing year over, partly due to the increase in fines and pre-holiday communication, including social media posts and door hangers. The city received 478 calls for service regarding fireworks from July 2 to July 4 last year.

The city also runs a parade, festival and a fireworks show, she said.

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“The important takeaway here is that these unnecessary calls for service, since fireworks are illegal in the City of Corona, are taking resources away from our community,” Schmitz said.

Police also try to get illegal fireworks before they hit the streets.

In the last few weeks, San Bernardino police have seized 12,000 pounds of illegal fireworks, Carrington said.

During a press conference last week, Barnes said Orange County deputies had seized more than $10,000 worth of illegal fireworks in contract cities and that the department anticipated seizing an additional $5,000 worth before the holiday.

“That is an increase,” Barnes said in comparison to last year. “It could lead to more opportunities for mishaps and injuries. Any illegal firework we confiscate has the potential for a $1,000 fine, not to mention the liability that would be incurred if you injure somebody or damage a home.”

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In Riverside, a 23-year-old man was arrested in late June after officers seized more than 1,000 pounds of illegal fireworks and 100 homemade destructive devices from his home, officials said. A Riverside bomb squad received a tip that the man was selling fireworks from his Clifton Boulevard home before investigators found the fireworks on a covered patio.

And in Gardena, in what is considered the largest fireworks seizure in state history, officers found 75 tons of illegal fireworks in a warehouse in the 17000 block of Vermont Avenue in late June and needed help from several other agencies, including those from Riverside and San Bernardino counties, to transport the haul to a facility where they could be disposed of safely.

“The objective of our fireworks plan is to improve the quality of life for the residents in the city of Gardena, namely our seniors, our veterans and our pets to ensure community safety,” Gardena police spokesman Lt. Christopher Cuff told reporters on June 26.



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California’s second largest reservoir is shrinking

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California’s second largest reservoir is shrinking


A new study from California’s Department of Water Resources (DWR) has found that Lake Oroville is shrinking.

Water levels at the state’s second largest reservoir are in a much better place than they were two years ago, when severe drought gripped much of California. Two back-to-back wet winters, accompanied by atmospheric rivers, have supplemented the water levels at many California reservoirs and contributed greatly to their recovery, although the atmospheric rivers also caused flooding and mudslides.

Atmospheric rivers are a “long, narrow region in the atmosphere—like rivers in the sky—that transport most of the water vapor outside of the tropics,” according to the National Oceanic and Atmospheric Administration.

Despite Lake Oroville’s recovery, water officials recently discovered that its capacity was shrinking and that the lake had lost 3 percent of capacity since it was created in the 1960s.

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The Enterprise Bridge is pictured over a full Lake Oroville on June 15, 2023, in Oroville, California. Water officials recently learned that the lake’s capacity is shrinking.

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“DWR utilized the latest terrain-mapping technology to determine if there have been any changes in the lake’s volume to optimize how the reservoir is operated and ensure accuracy in estimating California’s water supply availability,” a DWR webpage said.

“What resulted were highly detailed 3D topographic terrain models of the bottom of the lake, which DWR engineers used to calculate a new storage capacity of 3,424,753 acre-feet, approximately 3 percent less than previously estimated,” the webpage added.

The DWR attributed the loss to “weather swings and almost six decades of service.” Newsweek reached out to the DWR by email for comment.

Despite the loss, DWR officials said Lake Oroville remains the state’s second largest reservoir, behind only Lake Shasta.

“Having updated storage capacity data allows us to operate Lake Oroville in a more efficient manner,” said John Yarbrough, the DWR’s deputy director of the State Water Project.

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“It ensures we are providing adequate flood storage protection during winter months and accurately accounts for the state’s water supply, which is especially important as we experience climate change-driven weather extremes,” he said.

During the winter months, water officials occasionally release water from the reservoir to provide flood mitigation for downstream communities, such as in February when atmospheric rivers brought a deluge of rain to the area. Once California enters its dry season, officials transition to retaining as much water as possible in the reservoir.

Lake Oroville’s water levels began rising last December and reached full capacity in May. The levels have been steadily declining over the past few weeks as California enters its dry season.

However, the lake is in a much better state than it was in 2022. As of Tuesday, Lake Oroville’s water levels were at 887 feet, only 12 feet below full pool of 900 feet. During the summer of 2022, the water levels were at only 750 feet.

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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.



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Fossil fuel groups ask SCOTUS to overturn California’s clean car waiver

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Fossil fuel groups ask SCOTUS to overturn California’s clean car waiver


Fossil fuel interests want the Supreme Court to review California’s authority to set stricter emissions standards for cars and trucks than the federal government.

A petition to be filed Tuesday asks the high court to overturn an April ruling by the U.S. Court of Appeals for the District of Columbia Circuit. The judges unanimously ruled that industry groups and a coalition of Republican-led states had failed to show that a favorable ruling would fix the injuries they claimed from California’s waiver.

The petitioners to the Supreme Court include the American Fuel & Petrochemical Manufacturers (AFPM), the Domestic Energy Producers Alliance, Energy Marketers of America, the National Association of Convenience Stores, and a number of biofuel and agricultural organizations.

They argue that the D.C. Circuit — which found that the challengers lacked standing to bring their claim — failed to consider the substance of the case. The challengers ask the Supreme Court to review the merits and find that California’s waiver does not empower the state to regulate vehicle greenhouse gas emissions, impose electric vehicle mandates or limit consumer access to internal combustion engines.

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