New $20/hr minimum wage for fast food workers in California begins Monday – Newstrends
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New $20/hr minimum wage for fast food workers in California begins Monday

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8 months ago

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fast food worker

New $20/hr minimum wage for fast food workers in California begins Monday

Most of California’s fast food workers are set to be paid at least $20 per hour

Most fast food workers in California will be paid at least $20 an hour beginning Monday when a new law is scheduled to kick in giving more financial security to an historically low-paying profession while threatening to raise prices in a state already known for its high cost of living.

Democrats in the state Legislature passed the law last year in part as an acknowledgement that many of the more than 500,000 people who work in fast food restaurants are not teenagers earning some spending money, but adults working to support their families.

That includes immigrants like Ingrid Vilorio, who said she started working at a McDonald’s shortly after arriving in the United States in 2019. Fast food was her full-time job until last year. Now, she works about eight hours per week at a Jack in the Box while working other jobs.

“The $20 raise is great. I wish this would have come sooner,” Vilorio said through a translator. “Because I would not have been looking for so many other jobs in different places.”

The law was supported by the trade association representing fast food franchise owners. But since it passed, many franchise owners have bemoaned the impact the law is having on them, especially during California’s slowing economy.

Alex Johnson owns 10 Auntie Anne’s Pretzels and Cinnabon restaurants in the San Francisco Bay Area. He said sales have slowed in 2024, prompting him to lay off his office staff and rely on his parents to help with payroll and human resources.

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Increasing his employees’ wages will cost Johnson about $470,000 each year. He will have to raise prices anywhere from 5% to 15% at his stores, and is no longer hiring or seeking to open new locations in California, he said.

“I try to do right by my employees. I pay them as much as I can. But this law is really hitting our operations hard,” Johnson said.

“I have to consider selling and even closing my business,” he said. “The profit margin has become too slim when you factor in all the other expenses that are also going up.”

Over the past decade, California has doubled its minimum wage for most workers to $16 per hour. A big concern over that time was whether the increase would cause some workers to lose their jobs as employers’ expenses increased.

Instead, data showed wages went up and employment did not fall, said Michael Reich, a labor economics professor at the University of California-Berkeley.

“I was surprised at how little, or how difficult it was to find disemployment effects. If anything, we find positive employment effects,” Reich said.

Plus, Reich said while the statewide minimum wage is $16 per hour, many of the state’s larger cities have their own minimum wage laws setting the rate higher than that. For many fast food restaurants, this means the jump to $20 per hour will be smaller.

The law reflected a carefully crafted compromise between the fast food industry and labor unions, which had been fighting over wages, benefits and legal liabilities for close to two years. The law originated during private negotiations between unions and the industry, including the unusual step of signing confidentiality agreements.

The law applies to restaurants offering limited or no table service and which are part of a national chain with at least 60 establishments nationwide. Restaurants operating inside a grocery establishment are exempt, as are restaurants producing and selling bread as a stand-alone menu item.

At first, it appeared the bread exemption applied to Panera Bread restaurants. Bloomberg News reported the change would benefit Greg Flynn, a wealthy campaign donor to Newsom. But the Newsom administration said the wage increase law does apply to Panera Bread because the restaurant does not make dough on-site. Also, Flynn has announced he would pay his workers at least $20 per hour.

New $20/hr minimum wage for fast food workers in California begins Monday

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International

Israeli strikes pound central Beirut, suburbs

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2 hours ago

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November 26, 2024

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Israeli strikes pound central Beirut, suburbs

BEIRUT: Israeli strikes pounded a densely-populated part of the Lebanese capital and its southern suburbs on Tuesday, hours ahead of an anticipated announcement of a ceasefire ending hostilities between Israel and Lebanese armed group Hezbollah.

A strike on Beirut hit the Noueiri district with no evacuation warning and killed at least one person, Lebanon’s health ministry said in a preliminary toll.

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Minutes later, at least 10 Israeli strikes hit Beirut’s southern suburbs. They began approximately 30 minutes after the Israeli military issued evacuation orders for 20 locations in the area, the largest such warning yet.

As the strikes were under way, Israel’s military spokesperson Avichay Adraee said the air force was conducting a “widespread attack” on Hezbollah targets across the city.

 

Israeli strikes pound central Beirut, suburbs

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International

Over $100m wasted, Trump mocks Democrats for targeting him

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3 hours ago

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November 26, 2024

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President-elect Donald Trump

Over $100m wasted, Trump mocks Democrats for targeting him

Former U.S. President Donald Trump has fiercely criticised the legal cases brought against him, calling them “empty and lawless”.

He accused Democrats of weaponising the judicial system to target him as a political opponent.

In a strongly worded statement, Trump alleged that over $100 million in taxpayer money had been wasted in what he described as a politically driven effort to undermine his influence.

“Nothing like this has ever happened in our Country before,” he said, pointing to high-profile prosecutors, including Georgia’s Fani Willis and New York Attorney General Letitia James, as key figures in what he called a “political hijacking.”

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Trump also accused Willis of colluding with Nathan Wade, whom he described as “her lover” and lacking the experience to handle such cases.

He claimed Wade was paid “millions,” allegedly enabling lavish trips and cruises.

Letitia James, who is pursuing a civil fraud case against Trump, was also criticised.

He claimed she had campaigned on a promise to “get Trump” in her bid for office, an action he labelled “unethical” and “probably illegal.”

Trump also mentioned Manhattan District Attorney Alvin Bragg, alleging that Bragg initially resisted prosecuting him but was pressured into action by the Justice Department and the Democratic Party.

Describing the series of legal actions as a “low point in the history of our Country,” Trump maintained his resolve, declaring: “I persevered, against all odds, and WON.”

 

Over $100m wasted, Trump mocks Democrats for targeting him

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International

US-based Nigerians get 30-year sentence over $3.5m romance scam

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3 hours ago

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November 26, 2024

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US-based Nigerians get 30-year sentence over $3.5m romance scam

A United States federal jury sentenced two Nigerians, Anthony Ibekie and Samuel Aniukwu, to 30 years in prison for scamming certain US citizens $3,500,000.

This was mentioned in a news statement made public on the US Department of Justice website on Monday.

According to the statement, the Nigerians, Ibekie and Aniukwu mislead their victims by informing them that they had received big inheritances that required payment to claim.

The couple would then ask their victims to transfer money, promising to refund them after the inheritances were claimed.

It also stated that the duo carried out romance scams by establishing romantic relationships with their victims and demanding them to send money after they had built trust in their victims.

It read, “An undercover law enforcement investigation has resulted in federal prison sentences for two Nigerian nationals residing in the Chicago suburbs who conducted online inheritance scams and other fraud schemes.

“Using aliases, Anthony Emeka Ibekie and Samuel Aniukwu communicated with victims throughout the United States, convincing them they had received substantial inheritances and needed to send money to individuals associated with the defendants in order to claim it.

“In addition to the inheritance scam, the pair carried out an online romance scam that involved communicating with victims via social media and dating websites, building trust with the victims through a purported online romance, and convincing them to send money to a predetermined recipient. Aniukwu and Ibekie also orchestrated a ‘business email compromise’ scam that targeted corporate email accounts.

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“The fraud schemes were uncovered by a covert law enforcement investigation. The scams resulted in losses to victims of at least $3.5 million.”

According to the statement, after being arraigned on 14 charges, the duo pleaded guilty to their different alterations.

Following their guilty pleas, Ibekie was sentenced to 20 years in prison on Thursday, and Aniukwu was sentenced to 10 years in prison on November 8.

The statement continued, “A federal jury earlier this year convicted Ibekie, 59, of Oswego, Illinois, on all 14 counts of wire fraud, mail fraud, money laundering, making false statements to a bank, and passport fraud. U.S. District Judge Steven C. Seeger on Thursday sentenced Ibekie to 20 years in federal prison.

“Aniukwu, 50, of Romeoville, Illinois, pleaded guilty last year to wire fraud and money laundering charges. Judge Seeger on Nov. 8, 2024, sentenced Aniukwu to 10 years in prison.”

Meanwhile, Jennifer Gosha, an accomplice of the Nigerians and a US citizen, is expected to be sentenced on December 18 after pleading guilty.

“A third defendant, Jennifer Gosha, 52, a U.S. citizen from Oak Park, Ill., pleaded guilty earlier this year to charges of wire fraud and making false statements to a federal agent. Gosha is scheduled to be sentenced by Judge Seeger on December 18, 2024,” the statement concluded.

 

US-based Nigerians get 30-year sentence over $3.5m romance scam

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