California
The Consequences of California's Fast-Food Wage Law
It’s been about two months since the new California fast-food worker minimum wage law went into effect. Restaurant owners immediately felt the effects. Right out of the gate restaurant locations shut down. On April 1st a Fosters Freeze in Lemoore, which is over 30 miles south of Fresno, closed their restaurant. The employees thought it was an April Fool’s joke but it was very much real. The owner handed out their final paychecks. The location had been in Leemore for over 35 years. The gloves need to come off before more restaurants go out of business.
The governor of California signed the California Fast Food Accountability and Standards Recovery Act or FAST Act in September 2023. It raised the fast-food worker minimum wage from $16 per hour to $20 per hour. It went into effect on April 1, 2024. Within six months fast food workers got a 25 percent increase in pay per hour.
There are some details in the law that you may not be aware of. The new law applies to restaurants that own 60 or more locations. That is why you are seeing many well-known fast-food restaurants like MOD Pizza close five locations in California. Although it doesn’t apply directly to smaller restaurants that have 60 or less locations, it’s indirectly affecting them because now their current employees are more likely to quit and make a lateral change in jobs for a higher wage per hour.
Another indirect effect of an increased fast-food minimum wage is taxes. When a restaurant hires an employee, they have to pay the wages per hour and payroll taxes. The restaurant will pay a higher 7.65 percent federal payroll employer portion and Unemployment Insurance and Employee Training Tax for their California employer portion. The federal and California taxes add up quickly per employee. However, this benefits California as they make more revenue with the higher minimum wage, for them to use on unsavory government spending.
California has a budget deficit of at least $45 billion as of the latest announcement in May 2024. The budget will need to be passed by June 15 or the governor and lawmakers don’t get paid. Historically, the three biggest revenue sources are from personal income, corporate, and sales tax. According to Forbes, 817,669 residents left California in 2022. Raising the minimum wage on small business is an indirect way to make up for the shortfall in tax revenue, and are eyeballing small businesses to carry the load.
Many customers have been outraged by the high prices. To try to alleviate the pain, McDonald’s is planning to roll out a $5 meal deal starting June 25th. Unfortunately, it will only be around for one month. Just as consumers thought they would get relief it will most likely go back to the high prices. Wendy’s already has a $5 meal deal. People will go there for the meal deal. If a restaurant owner is a franchisee of McDonald’s their business will evaporate. It’s already too expensive to run a franchise on top of the new minimum wage. Customers will most likely eat at home. This effects local government as well. As restaurants close, cities lose revenue from city business licenses, business property taxes, and real estate taxes.
The financial burden on restaurants is tremendous. The bigger restaurants have other restaurants to absorb the higher minimum wage and can afford to close a restaurant. Independent restaurants will need to do a combination of increase prices, layoff more employees, and explore automation. Rather than doing that, the gloves need to come off and restaurants need to fight back.
Trying to repeal it on the ballot in the next election takes time and money. In the meantime, small businesses will need to band together to voice their frustration. Contact your local Congress person and complain. It’s time to stand up and fight. Be vocal, be bold, and let everyone know who is at the helm driving small business ship to the ground. Not doing anything will lead to the destruction of restaurants and small businesses in California.
Rene Carlos is an Enrolled Agent with nearly 20 years of experience in the tax and accounting industry and business coaching. He, and his wife, Julia, own Summit Tax & Accounting Advisors and Western Premier Business Coaching in Orange County, California. He specializes in corporate tax preparation, accounting, business coaching, and leadership development for small businesses.
California
California bill to bar police from taking second job with ICE advances in state Assembly
Wednesday, March 4, 2026 4:43AM
SACRAMENTO, Calif. (KABC) — A bill that would prevent police officers from moonlighting with federal immigration enforcement agencies, such as U.S. Immigration and Customs Enforcement, is advancing through the California State Assembly.
AB 1537 passed the State Assembly’s committee on public safety on Tuesday.
The bill also requires that officers report any offers for secondary employment related to immigration enforcement to their place of work.
Those failing to comply could face decertification as a peace officer in California.
The bill was introduced by Assemblymember Isaac Bryan, whose district includes Mar Vista, Ladera Heights, Mid-Wilshire and parts of South Los Angeles.
Copyright © 2026 KABC Television, LLC. All rights reserved.
California
Can’t win in primary election? Drop out, California Democrats say
Newsom slams Trump amid U.S. military action in Iran
Newsom criticized Trump for spending little time acknowledging four U.S. service members killed in the conflict with Iran during recent remarks.
California Democrats running for governor, your party has a message for you. Think carefully about your candidacy and campaign ahead of the swiftly approaching filing deadline.
California Democratic Party Chair Rusty Hicks urged candidates looking to assume the state’s highest office to “honestly assess the viability of their candidacy and campaign” as March 6, the final day to declare candidacy, nears. Hicks said that concerns about the crowded field of Democrat candidates “persist” in an open letter on Tuesday, March 3.
It comes as five leading candidates, several of which are Democrats — Katie Porter, Eric Swalwell, and Tom Steyer — are in a “virtual tie” per a recent poll, the Desert Sun reported, which is part of the USA TODAY Network.
Two Republican candidates pushing out California democrats in the gubernatorial bid may be “implausible,” but “it is not impossible,” Hicks said of the reasoning behind his latest message. Steve Hilton and Riverside County Sheriff Chad Bianco, both Republicans, lead in RealClear Polling’s average of various polls.
The party chair spotlighted the need for California Democrats’ leadership, particularly over Proposition 50, the voter-approved measure that will temporarily implement new congressional district maps, paving the way for Democrats to secure more seats in the U.S. House of Representatives.
“If in the unlikely event a Democrat failed to proceed to the general election for governor, there could be the potential for depressed Democratic turnout in California in November,” Hicks said. “The result would present a real risk to winning the congressional seats required and imperil Democrats’ chances to retake the House, cut Donald Trump’s term in half, and spare our nation from the pain many have endured since January 2025.”
During a press conference on March 2, Gov. Gavin Newsom said that when he is out in communities, people aren’t talking about the governor’s race. It’s an observation he called “interesting,” considering voting in the primary election starts in May.
“It’s been hard, I think, to focus on that race,” Newsom said, pointing to the attention on President Donald Trump, redistricting, and other matters.
What exactly is California Democratic Party asking of candidates?
In his open letter, Hicks gave directions to candidates.
First, assess your candidacy and campaign. If you don’t have a viable path to the general election, don’t file to get your name on the ballot for the primary election in June. Also, be prepared to suspend your campaign and endorse another candidate by April 15 if you decide to file but can’t show “meaningful progress towards winning the primary election.”
When is the next California election? Primary election in 2026
California voters will trim the field of candidates for governor on June 2. Only the two candidates who receive the most votes, regardless of party preference, will move on to the November election.
Paris Barraza is a reporter covering Los Angeles and Southern California for the USA TODAY Network. Reach her at pbarraza@usatodayco.com.
California
Supreme Court blocks California law limiting schools from telling parents about trans students
BAKERSFIELD, Calif.(KBAK/KBFX) — The U.S. Supreme Court has temporarily blocked a California law that limited when schools could require staff to disclose a student’s gender identity, clearing the way for schools to tell parents if their children identify as transgender without getting the students’ approval.
Rear view of multiracial students with hands raised in classroom at high school
The decision came after religious parents and educators, represented by the Thomas More Society, challenged California school policies aimed at preventing staff from disclosing a student’s gender identity.
Erwin Chemerinsky, dean and professor of law at the University of California Berkeley School of Law, said the ruling favors parents’ ability to be informed. “The Supreme Court today rules in favor of the claim of parents to be able to know the gender identity and gender pronoun of the children,” Chemerinsky said.
FILE:{ }transgender flag against blue sky background { }(Photo: AdobeStock)
The decision temporarily blocks a state law that bans automatic parental notification requirements if students change their pronouns or gender expression at school. The Thomas More Society called the decision a major victory for parents, saying the court found California’s policy likely violates constitutional rights.
Chemerinsky said the Supreme Court’s action is an emergency ruling. “This law is now put on hold. So what this means is that schools can require that teachers and other staff inform parents of the gender identity or gender pronouns of children,” he said.
Kathie Moehlig, founder and executive director of Trans Family Support Services, said she is concerned about how the ruling could affect students who do not have supportive families.
“I am really concerned about our kids that do come from these non affirming homes, that they know that they’re going to get in trouble, that they’re going to possibly have violence brought against them possibly kicked out of their homes,” Moehlig said.
Moehlig said parents should eventually know, but that the conversation should happen when a student feels safe. “Our students are going to be less inclined to confide in any adults that might be able to help to get them access to mental healthcare, to a support system. They may still tell their peers but they’re certainly not going to tell any other adult,” she said.
Equality California, a LGBTQ+ civil rights organization, shared a statement:
Equality California, the nation’s largest statewide LGBTQ+ civil rights organization, released the following statement from Executive Director Tony Hoang in response to today’s U.S. Supreme Court shadow docket ruling in Mirabelli v. Bonta regarding California’s student privacy protections for transgender youth. Today’s decision by the U.S. Supreme Court to intervene in this case is deeply disturbing. By stepping in on an emergency basis, the Court has effectively upended California’s student privacy protections without hearing full arguments and before the judicial process has run its course. While not surprising, this move reflects a dangerous willingness to short-circuit the established judicial process to dismantle protections for transgender youth. While this case continues to be litigated, the ruling revives Judge Benitez’s prior decision, which broadly targets numerous California laws protecting transgender and gender-nonconforming students — threatening critical safeguards that prevent forced outing and allow educators to respect a student’s affirmed name and pronouns at school. These protections exist for one reason: to keep students safe and ensure schools remain places where young people can learn and thrive without fear. To be clear: today’s decision does not impact California’s SAFETY Act, which prohibits school districts from adopting policies that forcibly out transgender students. The SAFETY Act remains in full effect, and we will continue defending it. Transgender youth deserve dignity, safety, and the freedom to learn without fear. We will never stop fighting for transgender youth and their families. Equality California will continue working with parents, educators, and advocates to ensure schools remain safe, welcoming, and focused on the success and well-being of every student.
The case now returns to the U.S. Court of Appeals for the Ninth Circuit, which will decide whether the California law is constitutional.
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