California Governor Gavin Newsom is at the center of controversy following a job listing from PlumpJack Cafe, a restaurant within a business group he established in 1992. The listing advertised a part-time busser position at $16 per hour, a rate notably lower than the new state-mandated $20 per hour minimum wage for fast-food workers, which came into effect recently.
PlumpJack Cafe, located in Olympic Valley, about 45 miles from Reno, Nevada, highlighted in the job description the responsibilities of assisting food servers to ensure guest satisfaction. The salary offered is $16 per hour, complemented by tips. This pay scale contrasts sharply with the earnings potential at fast-food establishments like McDonald’s, which now must offer a minimum of $20 per hour due to the new legislation.
Governor Newsom, who distanced himself from the day-to-day operations of his businesses by placing the PlumpJack Group into a blind trust upon his election in 2018, reportedly has no involvement in the management or operational decisions of the company, according to a spokesperson.
The law in question mandates a $20 per hour minimum wage for fast-food employees working for chains with 60 or more locations nationwide, representing a $4 increase from the prior $16 base pay. PlumpJack Group, which operates under the threshold with a portfolio of restaurants, bars, and wineries, is not subject to this wage requirement.
Critics have labeled the disparity in wages as hypocritical, especially given the cost of living in Olympic Valley and the high prices of menu items at PlumpJack Cafe, such as a $37 pasta dish and a $67 steak. Assembly Member Joe Patterson, a Republican, voiced his criticism on social media, questioning why Newsom’s food businesses do not align their wage policies with the standards he promotes for others.
Since the enactment of the $20 minimum wage for fast-food workers, establishments across California have adjusted their pricing to absorb the increased labor costs. This has led to concerns among California Republicans and others that the new wage standard could have broader economic repercussions, including impacts on employment levels and operational challenges for institutions like public schools competing for staff in a more competitive wage environment.
As the debate continues, the situation highlights the complex interplay between business practices, state legislation, and the living wage movement, underscoring the challenges of balancing economic viability with equitable compensation for workers in different sectors.