Gavin Newsom’s Restaurant Under Fire for $16 per Hour Wage
New Law Raises Minimum Wage to $20:
A new law recently enacted in California mandates a minimum wage of $20 per hour for fast-food workers employed in large chains. However, a restaurant in Olympic Valley partially owned by Governor Gavin Newsom is currently hiring for a position at $16 per hour, sparking controversy and questions about compliance with the new legislation.
Implemented on April 1, the law requires fast-food workers in large chain restaurants to receive a minimum wage of $20 per hour, up from the previous rate of $16. The legislation, championed by Democratic lawmakers, has faced criticism from some Republicans who argue it could lead to job losses.
Gavin Newsom's restaurant offers $16 hourly wage to employees
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PlumpJack CafĂ©'s Hiring Practices Under Scrutiny:Â
PlumpJack Café, located in Olympic Valley, California, is currently seeking a part-time busser at a wage of $16 per hour.
Despite being owned by the PlumpJack Group, a company founded by Newsom, the restaurant falls below the threshold for the $20 per hour minimum wage requirement.
Governor Newsom placed his ownership interests in the PlumpJack Group into a blind trust in 2018 and has had no day-to-day involvement in the company since taking office in January 2019. Newsweek has reached out to Newsom and the PlumpJack Group for comment.
Republican State Assembly member Joe Patterson raised concerns about the wage gap, highlighting the discrepancy between the $16 per hour wage and the $20 minimum wage requirement. Patterson's comments sparked further debate about fair wages and corporate responsibility.
Criticism of the New Minimum Wage Law:
Some Republicans have criticized the raised minimum wage, expressing concerns about potential job losses and increased costs for consumers. They argue that the new law could have adverse effects on businesses, leading to closures and layoffs.
McDonald’s CEO Acknowledges Wage Impact
During an earnings call, McDonald's CEO Chris Kempczinski acknowledged the wage impact for franchisees in California, indicating that adjustments in pricing may be necessary to accommodate the higher minimum wage.
Governor Newsom Denies Allegations of Favoritism:
Governor Newsom denied allegations of favoritism after reports surfaced suggesting he advocated for an exemption to the new minimum wage law benefiting a campaign donor. Newsom's spokesperson dismissed the claims as "absurd."
In January, California implemented a baseline minimum wage of $16 statewide, further highlighting the complexities and challenges surrounding wage regulations and enforcement.
The debate over minimum wage policies underscores the ongoing tension between workers' rights and economic considerations. As policymakers and businesses navigate these issues, the effects on workers, consumers, and the broader economy remain at the forefront of public discourse.
Moving forward, stakeholders will continue to grapple with questions of fairness and equity in wage policies, seeking solutions that balance the needs of workers and businesses while promoting economic growth and prosperity for all Californians.
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