California’s new minimum wage law went into effect at the beginning of the month and already has had some predictable consequences. Days ahead of the April 1 implementation of the law, a number of restaurants in the state began cutting jobs and hours, while some have gone out of business completely, unable to sustain the new $20 per hour wage hike. Others scaled back expansion plans or raised prices to cover the cost.
But lucky businesses in the state, in other words those with ties to Gov. Gavin Newsom, enjoyed carveouts in the law, including the exemption for certain establishments that make and sell bread…favoring billionaire Panera franchise owner Greg Flynn, who went to high school with Newsom and has donated to his campaign. While Panera has since announced they’d comply with the new law following public backlash (and even though they deny any connection), others noticed a different establishment in the state that’s offering wages below the $20/hour: PlumpJack Café in Olympic Valley. To be clear, the restaurant is not required to pay those wages given the law applies to food workers employed by large restaurant chains, but if Newsom is practicing what he preaches, critics allege businesses associated with him may have an interest in the financial well-being of employees.
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.
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." (Newsweek)
Republican State Assembly member Joe Patterson criticized the governor, comparing the cost of living in the area to the restaurant's wages.
I wonder why @CAgovernor @GavinNewsom’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. https://t.co/hwppKvQgSY pic.twitter.com/JcVDF5PrsD
— Joe Patterson (@Patterdude) April 2, 2024
He also pushed back on the argument that the business is in a blind trust.
“It’s in a blind trust”… somehow he continues to have fundraising events there and PlumpJack’s foundation support’s his wife’s foundation. These are details @andrewsheeler of the SacBee left out as he came to the defense of Newsom. https://t.co/LkPZl8xbfJ
— Joe Patterson (@Patterdude) April 4, 2024
