Posts tagged Gavin Newsom
Opinion: California’s Bad April Fools Joke: $20 Minimum Wage For Flipping Burgers
April 7, 2024 // Friedman reminded us that fast food jobs don’t require much training, and used to be a traditional training ground for the unskilled. But not any longer thanks to the minimum wage laws. And every increase in the minimum wage hurts the low paid and the unskilled the most. Any economist could have predicted, and Milton Friedman warned us so many years ago, fast food businesses are going to have to downsize their workforce, reduce employee hours, raise prices and automate more… all because Gavin Newsom and California’s Democrat lawmakers meddle in the private sector. As Friedman famously said, “The rise in the legal minimum-wage rate is a monument to the power of superficial thinking.”
COMMENTARY: Like AB5, CA’s Fast-Food Minimum Wage Hike Results in Layoffs, Closures, and Higher Prices
April 4, 2024 // It certainly wasn't a victory for the consumer. First, the prices of fast food started to tick up, then Pizza Hut drivers were laid off. The FAST Act is now fully in effect, and so are the unintended consequences. Tuesday, April 2 saw reports of fast-food restaurants cutting hours, laying off workers, and some completely shuttering their businesses. Welcome to California, where a Big Mac combo will cost you $25.00 and be served to you by a robot. Stevie Wonder could have seen this coming; but hey, power to the people, and all that.
Stalled Labor Pick Julie Su Lets Herself Off the Hook for California’s Missing Billions
April 2, 2024 // California’s auditor notes that the U.S. Department of Labor has issued helpful “guidance” for state finance officials in “Unemployment Insurance Program Letter 05-24.” Flip over to the U.S. Department of Labor’s DOL 05-24 letter and you learn what Julie Su is up to. The DOL memo says a Covid-era agreement between the feds and state unemployment departments “required states to use the CARES Act funds ‘for the purpose for which the money was paid to the state’ and to ‘take such action as reasonably may be necessary to recover for the account of the United States all benefit amounts erroneously paid and restore any lost or misapplied funds paid to the state for benefits or the administration of the Agreement.” But how will the federal DOL know whether states took “such action as reasonably necessary to recover” the billions stolen by fraudsters? Because the states will tell them so, or, as the DOL put it in inimitable Orwellian language: “Applying state finality laws to the CARES Act UC programs means that, in many instances, the state will not need to take retroactive action to resolve monitoring findings.”
Voters approved more arts money for schools. Powerful unions allege funds are being misused
April 1, 2024 // The unions and Beutner are calling on the state to require that districts certify within 30 days "that Prop. 28 funds have not been used to supplant any existing spending for arts education at any school." In addition, the signatories want the state to require school districts to list "additional arts and music teachers" employed by each school district in the current school year and "how that compares" to the prior year. "We say more means more," said UTLA President Cecily Myart-Cruz. "That means every student at every school in the entire state, and that also has to translate to more educators and classified workers in every school."
TV Commercial Slams SEIU for $20 Minimum Wage Hike
April 1, 2024 // The SEIU was behind the bill that created the California Fast Food Council as well as the new $20 wage—a hike that continues to be championed by Gov. Gavin Newsom despite fierce opposition from impacted workers, employers, and economists. The California Fast Workers Union is based in Washington, D.C., not California; it’s not a legal labor union and can’t bargain with employers; and it represents far less than one percent of the state’s fast food workforce. For more on CUF’s take on the SEIU’s fake union, read our recent OC Register op-ed here. A CUF survey of California restaurant workers released in March found that the workforce isn’t aligned with the SEIU’s agenda. We asked restaurant workers what they thought of the $20 wage hike and its potential consequences.
Bay Area fast food chains continue layoffs ahead of minimum wage increase
April 1, 2024 // Bay Area-based Vitality Bowls franchise owner Brian Hom, who owns two Vitality Bowls in San Jose, told the Wall Street Journal that his crew at the two locations had reduced from four to two employees, adding that he anticipated raising prices by 10% to alleviate labor cost. Hom also told the Wall Street Journal that any expansion plans would likely occur outside of California. "We’ve taken significant measures to optimize profitability as increased costs have arisen," a spokesperson for Vitality Bowls told SFGATE. "This includes menu innovations, tech stack advancements, and several other franchisee support programs.
Ice cream chain franchisee raises new questions about California’s fast-food labor law
March 31, 2024 // Assemblyman Chris Holden has not responded to a request for comment. A spokesman for SEIU California referred KCRA 3 to the California Labor Commission. No state leader involved or member of SEIU has responded to KCRA 3's question if they intended to include ice cream shops in the new law. "California’s landmark law raising wages for over 500,000 workers will result in urgently needed relief for working families on April 1, when the wage increase takes effect," the SEIU California spokesman said in a statement. The SEIU has previously said KCRA 3's reporting on its use of nondisclosure agreements is a "nothingburger." "Entities who will determine who will be subject to the law include the labor commissioner's office, the fast-food council, and potentially the courts," said Alex Stack, a spokesman for Gov. Newsom, told KCRA. Campbell told KCRA 3 she has hired a lobbyist and attorneys. When asked if she's considering taking legal action she said, "I think everything is on the table."
Commentary: Shades of AB5: Newsom Signs Imperfect AB610, the ‘FAST Act’ Wage Exemption
March 28, 2024 // What do airports, museums, event centers, and gambling establishments have in common? TONS of government regulations and tons of SEIU International employees. These workers are locked into their union wages and therefore safe anyway, as was intended. Just like AB5, these sweetheart exemptions were done under darkness and cover and engineered by SEIU International.
California Gov. Gavin Newsom Signs Bill To Carve Out Exemptions For New Minimum Wage Law Following ‘PaneraGate’ Scandal
March 27, 2024 // Pretty much, AB 610 now proposes to exempt fast food restaurants located in places which could most afford the $20 minimum wage increase because off how much more they charge already: at casinos, airports, hotels, event centers, theme parks, museums, gambling establishments, corporate campus cafeterias, and publicly owned lands including ports, piers, beaches and parks concessions. Only the mom and pop family-owned fast food restaurants will be paying the $20 per hour minimum wage – a “living wage.”
California lawmakers pass more carveouts from new fast food labor law
March 19, 2024 // The legislation approved Monday will exempt fast food restaurants in airports, hotels, convention centers, arenas, museums, casinos and college campuses. Lawmakers noted those workers already have collective bargaining agreements that include benefits and higher pay than the state's new minimum wage for fast food workers. The exemptions will apply immediately once the governor signs the bill. Sources who spoke to KCRA 3 on the condition they remain anonymous said Monday's action is the result of the Service Employees International Union (SEIU) use of non-disclosure agreements in the final negotiations of the fast-food labor law, known as the FAST Recovery Act. SEIU required the fast-food industry representatives to sign the NDA's to build trust during a contentious discussion on how to move forward with the legislation last summer. As a result, SEIU kept other labor groups out of the final negotiations.