Gavin Newsom's Restaurant Offers $16 Hourly Wage to Employee

A restaurant partially owned by California Governor Gavin Newsom is recruiting for a $16-per-hour role, despite a new state law guaranteeing a minimum wage of $20 per hour for fast-food workers. The restaurant appears not to meet the threshold for the new minimum wage, a law that Newsom himself signed to much fanfare in September.

The Context

On April 1, the new law guaranteeing a minimum wage of $20 per hour for fast-food workers employed in large chains took effect across California, up from the previous minimum of $16.

The law was passed by Democrats in the state legislature last year but has come under fire from some Republicans who claim it will cost jobs. A wage of $20 per hour for a full-time worker results in an annual salary of $41,600.

The new law applies to those restaurants that are part of a chain of 60 or more venues nationwide and which offer limited or no table service.

What We Know

PlumpJack Café in Olympic Valley, California, is seeking a part-time busser to "assist the food server in the restaurant to ensure guest satisfaction during all aspects of the dining experience."

The advert, placed on job posting website ZipRecruiter, says that the employee will be paid $16 per hour and their duties will include clearing dishes from tables, the preparation of caffeinated drinks and decorating tables prior to customer arrival.

The café is owned by the PlumpJack Group, a company founded by Newsom which specializes in wine and high-end dining. Its website says that PlumpJack Group operates four bars or restaurants, placing it well below the threshold for the $20 per hour minimum wage to take effect.

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 running of the company since assuming office in January 2019.

Newsweek has contacted Newsom and the PlumpJack Group for comment outside of normal working hours.

The official PlumpJack Group website states: "In 1992, Gavin Newsom opened his first business, PlumpJack Wines, combining his passion for wine and his driving entrepreneurial spirit.

"Over the next decade, the PlumpJack Group began to grow under his leadership to include many of the restaurants, wineries, and retail establishments in the current portfolio."

Views

Republican State Assembly member Joe Patterson shared screenshots of the PlumpJack Café, PlumpJack Group website referring to Newsom as its founder and the rental cost of two properties in the area on X, formerly Twitter.

He added: "I wonder why @CAgovernor @GavinNewson'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."

The increased minimum wage for fast-food workers more generally has been criticized by some Republicans who warn it will reduce the number of jobs.

Speaking to DailyMail.com, Rep. Doug LaMalfa from California said: "As if prices in California aren't high enough. Fast food prices are already rising, and employees are being replaced by self-checkout kiosks and soon robot cooks.

"Nearly everyone will be worse off: higher prices, fewer jobs, fewer eating options as places close, and fewer small businesses. Ultimately this new $20 minimum wage will affect nearly every job, with similar results."

In an earnings call at the end of October, McDonald's CEO Chris Kempczinski said that "there is going to be a wage impact for our California franchisees," which he added would have to be partially "worked through with higher pricing."

In February, Newsom denied a report by Bloomberg News that he pushed for a separate exception to the new minimum wage law that benefits a campaign donor. The law exempts restaurants that have on-site bakeries and sell bread as a standalone menu item.

As a result, Greg Flynn, a billionaire and Newsom donor, could save hundreds of thousands of dollars at his Panera Bread outlets in California, according to Bloomberg.

A spokesman denied any connection, saying: "This story is absurd."

In January, a baseline minimum wage of $16 came into effect across California.