California Gov. Gavin Newsom is facing criticism after a restaurant he partially owns, PlumpJack Cafe in Olympic Valley, posted a job listing for $16 an hour when a new state law requires fast food eateries to pay their employees $20 an hour. The job posting is for a part-time busser and states that the salary is $16 an hour plus tips. This means that a food service worker at a McDonald’s would make more than employees at PlumpJack Cafe due to the wage difference.
Although Newsom no longer plays a role in the day-to-day operations of his businesses and has put PlumpJack Group into a blind trust, the controversy surrounding the wage difference still stands. The new state law raises the minimum wage for restaurants offering limited or no table service, part of a chain with 60 or more locations nationwide, by $4 an hour. However, as PlumpJack Group operates four restaurants and bars and four wineries, it falls short of meeting the $20 minimum wage requirement.
Critics of the job listing, such as Republican Assembly Member Joe Patterson, have called out the hypocrisy of Gov. Newsom’s businesses not paying $20 an hour despite advocating for a living wage elsewhere. This has raised concerns about the impact on consumers, with fast food eateries already increasing their menu prices to accommodate the higher wage for employees. For example, a Burger King in Los Angeles raised the price of a Texas Double Whopper meal by nearly 12% to adjust to the increased costs of paying employees $20 an hour.
Beyond the financial impact on consumers, there are fears among California Republicans that the new $20 minimum wage will result in job losses. There is also concern about the effect on low-paid cafeteria workers at public schools who will now have to compete with fast food employers for staff. The wage difference between high-end restaurants like PlumpJack Cafe and fast food establishments highlights the complexities of implementing new minimum wage laws, as well as the challenges faced by businesses in meeting these requirements while remaining financially viable. Ultimately, this situation raises questions about the broader implications of legislating wage increases and the potential consequences for different sectors of the economy.
