New study reveals blue state's fast-food minimum wage hike jeopardized thousands of jobs
A Berkeley Research Group study discovered not only were there 10,700 jobs lost between June 2023 and June 2024 in the sector, according to Bureau of Labor Statistics data. But prices at the establishments soared by 14.5% after the new minimum wage became law.
"California fast food restaurants also increased automation and technology adoption to offset rising labor costs," the study released Feb. 18 stated.
"Therefore, it should not be surprising that the number of employees per restaurant is declining.
"Californians are bearing the cost of the minimum wage increase through fewer available jobs and higher food cost," it added. The study also debunked notions that the minimum-wage legislation created jobs, according to the California Globe.
The study noted that the authors were "retained" by Save Local Restaurants but said the research was conducted independently.
Chef Andrew Gruel, a California-based restaurateur, told Fox News Digital he saw early on that there could be negative consequences for the service industry.
"I railed about this months ago," he said, adding that while the early economic effects were being touted, he suggested there would be losses.
Gruel also offered advice to businesses struggling to keep up with the minimum wage requirement.
"Cut your menu size, outsource a lot of kitchen labor and utilize AI for back office management," Gruel said.
The minimum wage for workers was $16 before the $20 minimum wage for fast-food workers became law in April 2024. Gov. Gavin Newsom said in September 2023 the increase would help workers earn more as the cost-of-living rises.
"Fast food workers in CA will now be paid the highest minimum wage of any state in the country. I just signed a bill that will ensure these workers receive the fair pay they deserve," he tweeted at the time.
However, the report also cautioned that it may also result in people getting paid less overall and "accelerate automation."
"If large enough, the combination of job eliminations and reductions could leave workers earning less income as a result of (the) $20 minimum wage," the report stated.
"For example, even if no jobs are eliminated (a dubious assumption given the BLS data discussed above), a 20% reduction in hours worked with no overtime increases would erase the financial gains from the 25% hourly wage increase, leaving workers with the same or even less total income," it continued.
The California Fast Food Council may consider increasing the minimum wage to $20.70, according to Restaurant Business Magazine.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time Business News
24 minutes ago
- Time Business News
How Electronics Contract Manufacturer Partnerships Power Mission-Critical Applications: An Inside Look at Contract Manufacturing
In today's rapidly evolving technology landscape, over 70% of electronics companies rely on specialized partners to bring their products to market efficiently and cost-effectively. Electronics contract manufacturing has become the backbone of modern innovation, enabling everything from life-saving medical devices to mission-critical aerospace systems. Whether you're an engineering professional evaluating manufacturing options or a decision-maker exploring cost optimization strategies, understanding the intricacies of contract manufacturing can significantly impact your project's success. This comprehensive guide explores how electronics contract manufacturer partnerships work, what makes them essential for today's competitive markets, and how to leverage these relationships for maximum project success. The Basics: What is Electronics Contract Manufacturing? Electronics contract manufacturing represents a strategic partnership where specialized facilities handle the production, assembly, and testing of electronic products on behalf of original equipment manufacturers (OEMs). Think of it as having access to a fully equipped electronics factory without the massive capital investment—complete with engineering expertise, quality systems, and production capabilities. At its core, an electronics contract manufacturer serves as an extension of your engineering team. These partners bring together advanced manufacturing equipment, skilled technicians, and proven processes to transform your designs into finished products. The relationship goes far beyond simple assembly work, encompassing everything from initial design support to final product delivery. Contract manufacturing services typically include custom cable assemblies, wire harness manufacturing, box build assemblies, and precision connector solutions. This comprehensive approach allows companies to focus on their core competencies—innovation and market development—while leveraging specialized manufacturing expertise. The Manufacturing Process Behind Contract Electronics Production Design and Engineering Collaboration The contract manufacturing process begins long before production starts. Leading electronics contract manufacturer partners provide engineering support during the design phase, helping optimize products for manufacturability while maintaining performance specifications. This collaborative approach identifies potential issues early, reducing costly redesigns and accelerating time-to-market. Engineering teams work closely with clients to review designs, recommend materials, and suggest manufacturing-friendly modifications. This partnership approach ensures that custom cable assemblies and other components meet both technical requirements and production realities. Dual-Facility Manufacturing Strategy Modern contract manufacturing often employs a dual-facility approach, combining domestic and offshore capabilities to optimize cost and delivery. US-based facilities handle prototyping, engineering changes, and time-sensitive production, while offshore operations manage high-volume manufacturing runs. This strategy provides several advantages: rapid prototyping capabilities, flexibility for engineering changes, cost optimization for large volumes, and reduced supply chain risks. The key lies in seamlessly integrating both facilities to maintain quality standards and communication throughout the production process. Advanced Assembly Processes Contract manufacturing encompasses various assembly approaches, each suited to different product requirements. Wire harness manufacturing involves precision routing, connector attachment, and comprehensive testing to ensure signal integrity. Box build assemblies integrate multiple components into complete systems, requiring careful planning and quality control at each stage. For specialized applications, turnkey manufacturing services provide complete solutions from component sourcing through final testing. This comprehensive approach streamlines vendor management while ensuring consistent quality across all assembly processes. Custom Solutions and Engineering Excellence Tailored Assembly Approaches Every electronic application presents unique challenges requiring customized solutions. Medical device applications demand biocompatible materials and FDA compliance, while aerospace systems require AS9100D certification and extreme reliability standards. Industrial applications focus on durability and harsh environment performance. Successful electronics contract manufacturer partnerships adapt their processes to meet these diverse requirements. Custom cable assembly solutions might incorporate specialized materials for high-temperature applications, while precision electronics manufacturing ensures consistent performance across thousands of units. Material Selection and Quality Standards Material selection significantly impacts product performance, especially in demanding applications. Contract manufacturers maintain extensive material libraries, including various conductor types, insulation materials, and connector options. This expertise helps optimize designs for specific environmental conditions and performance requirements. Quality standards vary by industry, but leading contract manufacturers maintain multiple certifications to serve diverse markets. ISO 9001 provides foundational quality management, while AS9100D addresses aerospace-specific requirements. ITAR compliance enables defense application support, ensuring comprehensive capability across critical industries. Quality Assurance and Industry Standards Certification and Compliance Framework Quality assurance in electronics contract manufacturing extends far beyond basic testing. Comprehensive quality systems encompass design controls, process validation, and continuous improvement protocols. These systems ensure consistent results whether producing single prototypes or thousands of production units. Industry certifications provide third-party validation of quality capabilities. ISO 9001 establishes fundamental quality management principles, while industry-specific standards like AS9100D address additional requirements for aerospace applications. Medical device manufacturing requires FDA compliance and biocompatibility testing protocols. Testing Protocols and Validation Rigorous testing protocols validate both individual components and complete assemblies. Cable assembly testing includes continuity verification, insulation resistance measurement, and environmental stress screening. Box build testing encompasses functional verification, burn-in protocols, and final system integration validation. Advanced testing capabilities often include automated test equipment for high-volume production, environmental testing chambers for temperature and humidity stress, vibration testing for mechanical durability, and electromagnetic compatibility verification for regulatory compliance. Industry Applications and Market Impact Aerospace and Defense Applications Aerospace cable assembly solutions demand exceptional reliability under extreme conditions. Temperature ranges from -55°C to +200°C, vibration resistance, and electromagnetic interference shielding represent standard requirements. Mission-critical applications require additional validation through accelerated life testing and failure mode analysis. Defense applications add security considerations through ITAR compliance and domestic manufacturing requirements. These projects often involve low-volume, high-complexity assemblies requiring extensive documentation and traceability protocols. Medical Device Manufacturing Medical device cable assemblies must meet stringent biocompatibility and sterilization requirements. Materials selection considers long-term implantation safety, while manufacturing processes ensure sterile packaging and handling. FDA compliance requires comprehensive design controls and change management protocols. Contract manufacturing for medical applications often involves specialized materials like biocompatible polymers, precious metal plating for corrosion resistance, and unique connector configurations for specific medical procedures. Industrial and Energy Applications Industrial applications emphasize durability and environmental resistance. Wire harness and cable assembly solutions for energy applications must withstand temperature extremes, chemical exposure, and mechanical stress. Renewable energy applications add requirements for UV resistance and long-term outdoor exposure. High-voltage applications require specialized insulation materials and safety protocols. Contract manufacturers serving these markets maintain expertise in high-voltage design principles and testing procedures. Partnership Approach and Future Trends Strategic Manufacturing Partnerships Successful contract manufacturing relationships extend beyond simple vendor arrangements to become strategic partnerships. These relationships involve shared engineering resources, joint problem-solving initiatives, and collaborative product development efforts. Long-term partnerships enable continuous improvement through process optimization, cost reduction initiatives, and technology advancement collaboration. Regular business reviews assess performance metrics, identify improvement opportunities, and align future capacity planning with customer growth projections. Emerging Technologies and Automation The future of electronics contract manufacturing involves increasing automation and advanced technologies. Automated wire processing equipment improves consistency and reduces labor costs, while robotic assembly systems handle complex box build requirements with precision and repeatability. Industry 4.0 technologies provide real-time production monitoring, predictive maintenance capabilities, and enhanced quality tracking. These advances enable greater efficiency, improved quality control, and reduced production costs across all manufacturing processes. Market Evolution and Customer Collaboration Market trends toward miniaturization, increased functionality, and faster development cycles drive evolution in contract manufacturing capabilities. Customers increasingly value partners who provide comprehensive engineering support, rapid prototyping capabilities, and flexible production scaling. Geographic diversification continues expanding as companies seek supply chain resilience and cost optimization. Leading contract manufacturers develop global capabilities while maintaining local engineering support and customer service excellence. Conclusion Electronics contract manufacturing has evolved from simple assembly services to comprehensive partnerships that enable innovation and market success. Understanding the manufacturing process, quality requirements, and partnership benefits helps companies make informed decisions about their production strategies. The most successful projects combine technical expertise with strategic partnership approaches, leveraging specialized capabilities to achieve optimal results. As technology continues advancing and markets become increasingly competitive, these manufacturing partnerships will play even more critical roles in bringing innovative products to market efficiently and cost-effectively. For companies evaluating manufacturing options, the key lies in finding partners who understand your specific requirements, maintain appropriate certifications, and demonstrate commitment to long-term collaboration. The right electronics contract manufacturer becomes an extension of your team, contributing engineering expertise and manufacturing excellence to drive project success. TIME BUSINESS NEWS
Yahoo
29 minutes ago
- Yahoo
Eventbrite, Inc. (EB) Launches New 'Lineup' Tool with New Music-Focused Features
Eventbrite, Inc. (NYSE:EB) is included in our list of the 10 Best AI Stocks to Buy Under $3. A diverse and enthusiastic live audience attending a sold out WWE event. Eventbrite, Inc. (NYSE:EB) launched new music-focused features on June 17, 2025. With this update, the company offers a 'lineup' tool, allowing independent artists and organizers to highlight performances with artist profiles, photos, and links. Furthermore, this feature will sync across platforms like Bandsintown, Google Events, and soon, Spotify. With this, Eventbrite, Inc. (NYSE:EB) bridges digital discovery with real-world audiences, offering major-market exposure to smaller venues at no additional cost. As 95% of young adults are eager to translate their online interests into in-person experiences, this upgrade aligns with the ongoing trend. Having handled 35 million music ticket sales in 2024, Eventbrite, Inc. (NYSE:EB) is also launching tools like VIP guest management and 'Buy Now, Pay Later' for U.S. customers. Eventbrite, Inc. (NYSE:EB), a global events marketplace, integrates AI-powered tools to streamline operations, attract audiences, and boost ticket sales for event creators. It is included in our list of the best AI stocks. While we acknowledge the potential of EB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Cheap Value Stocks to Buy Now According to Warren Buffett and 7 Best Potash Stocks to Buy According to Analysts. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29 minutes ago
- Yahoo
8×8, Inc. (EGHT) Reports Q1 2026 Results
With a share price under $3 and strong hedge fund interest, 8×8, Inc. (NASDAQ:EGHT) secures a spot on our list of the 10 Best AI Stocks to Buy Under $3. Pixabay/Public Domain On August 5, 2025, 8×8, Inc. (NASDAQ:EGHT) released its results for Q1 2026. The company reported strong performance, achieving year-over-year growth for the first time in nine quarters. The service revenue for the quarter reached $176.3 million, which was above the high end of guidance and marked a 2% YoY improvement. This was driven by usage-based revenue, which increased by 30%, particularly due to CPaaS solutions. Meanwhile, 8×8, Inc. (NASDAQ:EGHT) reported a 67.8% gross profit dip due to the shift toward lower-margin consumption-based services. Yet, the company's focus on innovation paid off, as its 8×8 Voice for Teams license sales grew 30%. Furthermore, NOTE was named a top 5 Operator Connect partner. The company's financial health was bolstered by a positive cash flow of over $11 million and a 40% debt reduction since 2022. This quarter was its 18th straight period of positive operating cash flow. Looking ahead, FX pressures and continued challenges from the Fuze platform are expected to impact the company's short-term guidance. 8×8, Inc. (NASDAQ:EGHT) helps businesses deliver smarter customer experiences with its AI-powered communication and customer engagement solutions. It is included in our list of the best AI stocks. While we acknowledge the potential of EGHT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Cheap Value Stocks to Buy Now According to Warren Buffett and 7 Best Potash Stocks to Buy According to Analysts. Disclosure: None. Sign in to access your portfolio
