A California restaurant partly owned by Democratic Governor Gavin Newsom is reportedly paying some employees only $16 an hour, despite the state’s recent increase of the minimum wage to $20. The PlumpJack Café in Olympic Valley is owned by the PlumpJack Group, a company founded by Newsom, who placed his business holdings into a blind trust in 2018. This means he has no control over the wages being offered at the restaurant. However, job listings for the restaurant on various websites show that while some positions, like line cook and pastry cook, are offering wages starting at $22 and $25 an hour, others, such as host and busser, are only paying $16 an hour.
The new minimum wage increase, which went into effect on April 1 and applies to fast-food restaurants statewide, was signed into law by Newsom in September 2023. The governor praised the law, stating that it would give workers a stronger voice and better wages, safer working conditions, and more training. However, restaurant owners across the state have warned about the impact the increase will have on their businesses, particularly in the heavily-Democratic state. One former assistant general manager at Foster Freeze, Monica Navarro, recently reported that her store in Lemoore had closed due to the raised wages. She also noticed other local businesses shutting down and employees having their hours cut.
Some large chains, like Pizza Hut and Round Table Pizza, have also announced plans to cut jobs in preparation for the wage hike. Since September 2023, there has been a 1.3% decrease in fast-food employment in California, while total private employment has decreased by 0.2%. This has led to automation being implemented in some restaurants, such as El Pollo Loco, to compensate for the higher labor costs. This includes automating certain food preparation processes.
Newsom faced backlash when it was reported that he pushed for an exemption to the wage increase for Panera Bread franchise owner Greg Flynn, who had donated over $100,000 to Newsom’s campaign in 2022. The exemption would allow bakeries and restaurants located in certain establishments, such as airports and hotels, to be exempt from the minimum wage increase. However, Newsom’s office and Flynn stated that the chain will most likely not be exempt from the increase, as it would have little practical value since other restaurants in the same segment would still have to offer competitive wages to attract and retain employees.
I wonder why @CAgovernor @GavinNewsom’s food businesses don’t pay $20/hour? Live job posting at $16/hr in Olympic Valley. It’s very, very expensive to live there… but he doesn’t do as he tells others and doesn’t pay a living wage. https://t.co/hwppKvQgSY pic.twitter.com/JcVDF5PrsD
— Joe Patterson (@Patterdude) April 2, 2024
In conclusion, while Newsom has pushed for the minimum wage increase in California, it is clear that there are concerns about its impact on small businesses and employment. The revelation about his ties to a potential exemption has also raised questions about his motives and the role of various interest groups in shaping the legislation. As the state moves forward with the increase, it will be important to monitor its effects on the restaurant industry and employment rates.
sounds like quid pro quo to me….INVESTIGATE NEWSCUM
& during the Wuhan plague IF U donated to Newsom U could keep business open
& he pays 16.00 for his staff while he urges everyone to pay 20.00
Thats CA for Ya
Gavin nuisance. What a slime ball, POS, parasite.
The law said fast food chains maybe this Cafe isn’t considered fast food. He did exempt the Panera guy from this. Said it was because they make and serve bread!! Wouldn’t that apply to Subway too.? The Panera owner is a BIG donor to Newsolinis campaign ????????
ROFLMAO……they elected the trash so they can live with it and Calipornia is going downhill fast. Let it rot until voters grow up if ever.