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Should Wildfire Victims Get a Break?","publishDate":1713034843,"format":"standard","headTitle":"California Requires Solar Panels on New Homes. Should Wildfire Victims Get a Break? | KQED","labelTerm":{"term":18481,"site":"news"},"content":"\u003cp>Hundreds of homes in Joe Patterson’s Northern California Assembly district burned to the ground in the \u003ca href=\"https://calmatters.org/newsletters/whatmatters/2021/08/california-wildfires-caldor-fire-lake-tahoe/\">Caldor Fire\u003c/a>.\u003c/p>\n\u003cp>In the three years since that devastating summer, many of those rebuilding homeowners have ended up on the hook for tens of thousands of dollars, thanks to state laws that require solar panels on new homes — even on those that didn’t have them before they burned down.\u003c/p>\n\u003cp>“Trust me when I say this: $25,000 to build solar onto a house where people do not have solar is 100% an impediment to rebuilding,” \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/joe-patterson-133512\">Patterson, a Republican from Rocklin\u003c/a>, told the Assembly Natural Resources Committee earlier this week.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Patterson’s \u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240ab2787?slug=CA_202320240AB2787\">Assembly Bill 2787\u003c/a>, which passed the committee unanimously, would give some of those poorly-insured, low- and middle-income homeowners rebuilding after a natural disaster a break from the state’s solar-panel building requirement.\u003c/p>\n\u003cp>The bill would exempt homeowners at or below the median income for their county from the state’s building codes that require new solar on homes if they’re damaged or destroyed in a natural disaster. The legislation, which would expire in 2028, also would limit the benefit to those who don’t have an insurance plan that would cover the costs of the upgrade to new solar.\u003c/p>\n\u003cp>The bill now moves to the Assembly Appropriations Committee, where it faces an uncertain future. Last year, that committee killed a similar bill by Republican Assemblymember \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/jim-patterson-119\">Jim Patterson\u003c/a> of Fresno.\u003c/p>\n\u003cp>Joe Patterson, no relation, told CalMatters he expects his bill, which is coauthored by the Fresno Republican, to make it through the committee this time since it doesn’t contain funding for a study like last year’s bill.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"Assemblymember Joe Patterson (R-Rocklin)\"]‘$25,000 to build solar onto a house where people do not have solar is 100% an impediment to rebuilding.’[/pullquote]It’s another matter whether Gov. Gavin Newsom will sign it if the bill is also approved in the Senate and reaches his desk. In 2022, Newsom vetoed a similar bill, citing the need for solar power to reduce greenhouse gases that are a contributing factor for wildfires.\u003c/p>\n\u003cp>\u003ca href=\"https://calmatters.org/environment/climate-change/2024/01/california-solar-demand-plummets/\">Solar power\u003c/a> is a critical part of the \u003ca href=\"https://www.energy.ca.gov/news/2021-03/california-releases-report-charting-path-100-percent-clean-electricity\">state’s ambitious goal\u003c/a> to achieve 90% carbon-free electricity by 2035 and 100% by 2045. Large-scale and rooftop solar is projected to prove more than half of the grid’s power by 2045.\u003c/p>\n\u003cp>“Extending this exemption would nullify these positive outcomes and instead would increase homeowner energy costs at a time when many homeowners are facing rising electric rates and bills,” \u003ca href=\"https://www.gov.ca.gov/wp-content/uploads/2022/09/AB-1078-VETO.pdf?emrc=bded57\">Newsom wrote in his veto message (PDF)\u003c/a>.\u003c/p>\n\u003cp>Asked about this latest bill, Newsom’s press office responded that the governor doesn’t typically comment on pending legislation.\u003c/p>\n\u003cp>Joe Patterson said he hopes Newsom would support this bill, given that it’s more narrow than the one he vetoed in 2022, and because some Caldor Fire victims with poor insurance say they never received \u003ca href=\"https://www.latimes.com/california/story/2022-03-01/wildfire-survivors-decry-lack-of-fema-aid\">federal disaster relief cash to help them rebuild\u003c/a>.\u003c/p>\n\u003cfigure id=\"attachment_11982889\" class=\"wp-caption alignnone\" style=\"max-width: 1568px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11982889\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/04/102523-Paradise-Rebuild-AP-CM-02-copy.jpg\" alt=\"\" width=\"1568\" height=\"881\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/04/102523-Paradise-Rebuild-AP-CM-02-copy.jpg 1568w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/04/102523-Paradise-Rebuild-AP-CM-02-copy-800x449.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/04/102523-Paradise-Rebuild-AP-CM-02-copy-1020x573.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/04/102523-Paradise-Rebuild-AP-CM-02-copy-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/04/102523-Paradise-Rebuild-AP-CM-02-copy-1536x863.jpg 1536w\" sizes=\"(max-width: 1568px) 100vw, 1568px\">\u003cfigcaption class=\"wp-caption-text\">The sun sets over Valley Ridge Drive in Paradise, Butte County, on Oct. 26, 2023. Empty lots, homes under construction and residences built after the Camp Fire line the street. \u003ccite>(Noah Berger/AP Photo)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Meanwhile, the insurance crisis in California’s wildfire country has only gotten worse since.\u003c/p>\n\u003cp>After the devastating wildfire seasons of 2017 and 2018, private insurance companies have been dropping policies for hundreds of thousands of Californians, forcing many to join the state’s home insurer of last resort known as FAIR plan or risk going uninsured.\u003c/p>\n\u003cp>Just last month, State Farm announced it wasn’t renewing \u003ca href=\"https://www.ktvu.com/news/state-filing-shows-california-zip-codes-where-state-farm-plans-to-drop-policy-holders\">72,000 California home and apartment policies\u003c/a>.\u003c/p>\n\u003cp>In his \u003ca href=\"https://digitaldemocracy.calmatters.org/hearings/257724?t=1381&f=e9a00eed954ce559cf08ecd40c56158e\">testimony before the Natural Resources Committee\u003c/a>, Patterson said his district has seen skyrocketing numbers of constituents on the FAIR Plan.\u003c/p>\n\u003cp>[aside label=\"Related Stories\" postID=\"science_1991404,science_1985611\"]“In 2019, we had roughly 8,100 households covered by the FAIR Plan in my district,” Joe Patterson told the committee. “Now, in 2023, we have 41,000 people covered by the FAIR Plan.”\u003c/p>\n\u003cp>He said the FAIR plan, at most, will only pay 10% of the costs to upgrade a destroyed home to the most current building codes including mandatory solar panels.\u003c/p>\n\u003cp>“And that 10% coverage really won’t go very far, especially to cover a solar system that costs about $25,000,” Patterson told the committee.\u003c/p>\n\u003cdiv class=\"cm-leg-card cm-leg-card-padding\">\n\u003cp>As Patterson testified, sitting beside him was El Dorado County Supervisor George Turnboo. His district includes Grizzly Flats, which was torched in the Caldor Fire.\u003c/p>\n\u003cp>“The costly burden on the Caldor Fire survivors trying to rebuild their lives is not worth the minimal benefit solar technology provides them in a very high snow and forest region,” Turnboo said.\u003c/p>\n\u003cp>Their arguments resonated with the 11 members of the Natural Resources Committee, including eight Democrats, who voted to pass the bill over objections from the solar industry.\u003c/p>\n\u003cp>“We understand the very sympathetic plight that some of these folks are in,” said Kim Stone, a lobbyist for \u003ca href=\"https://digitaldemocracy.calmatters.org/people/926\">the California Solar and Storage Association\u003c/a>. “But we don’t exempt them from other building code upgrade requirements.”\u003c/p>\n\u003c/div>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"A California Republican’s bill would exempt low- and middle-income wildfire victims from solar panels requirements on rebuilt homes that didn’t have them when they burned down.","status":"publish","parent":0,"modified":1713036969,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":25,"wordCount":904},"headData":{"title":"California Requires Solar Panels on New Homes. Should Wildfire Victims Get a Break? | KQED","description":"A California Republican’s bill would exempt low- and middle-income wildfire victims from solar panels requirements on rebuilt homes that didn’t have them when they burned down.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"sticky":false,"nprByline":"\u003ca href=\"https://calmatters.org/author/ryan-sabalow/\">Ryan Sabalow\u003c/a>","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/11982884/california-requires-solar-panels-on-new-homes-should-wildfire-victims-get-a-break","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Hundreds of homes in Joe Patterson’s Northern California Assembly district burned to the ground in the \u003ca href=\"https://calmatters.org/newsletters/whatmatters/2021/08/california-wildfires-caldor-fire-lake-tahoe/\">Caldor Fire\u003c/a>.\u003c/p>\n\u003cp>In the three years since that devastating summer, many of those rebuilding homeowners have ended up on the hook for tens of thousands of dollars, thanks to state laws that require solar panels on new homes — even on those that didn’t have them before they burned down.\u003c/p>\n\u003cp>“Trust me when I say this: $25,000 to build solar onto a house where people do not have solar is 100% an impediment to rebuilding,” \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/joe-patterson-133512\">Patterson, a Republican from Rocklin\u003c/a>, told the Assembly Natural Resources Committee earlier this week.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Patterson’s \u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240ab2787?slug=CA_202320240AB2787\">Assembly Bill 2787\u003c/a>, which passed the committee unanimously, would give some of those poorly-insured, low- and middle-income homeowners rebuilding after a natural disaster a break from the state’s solar-panel building requirement.\u003c/p>\n\u003cp>The bill would exempt homeowners at or below the median income for their county from the state’s building codes that require new solar on homes if they’re damaged or destroyed in a natural disaster. The legislation, which would expire in 2028, also would limit the benefit to those who don’t have an insurance plan that would cover the costs of the upgrade to new solar.\u003c/p>\n\u003cp>The bill now moves to the Assembly Appropriations Committee, where it faces an uncertain future. Last year, that committee killed a similar bill by Republican Assemblymember \u003ca href=\"https://digitaldemocracy.calmatters.org/legislators/jim-patterson-119\">Jim Patterson\u003c/a> of Fresno.\u003c/p>\n\u003cp>Joe Patterson, no relation, told CalMatters he expects his bill, which is coauthored by the Fresno Republican, to make it through the committee this time since it doesn’t contain funding for a study like last year’s bill.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘$25,000 to build solar onto a house where people do not have solar is 100% an impediment to rebuilding.’","name":"pullquote","attributes":{"named":{"align":"right","size":"medium","citation":"Assemblymember Joe Patterson (R-Rocklin)","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>It’s another matter whether Gov. Gavin Newsom will sign it if the bill is also approved in the Senate and reaches his desk. In 2022, Newsom vetoed a similar bill, citing the need for solar power to reduce greenhouse gases that are a contributing factor for wildfires.\u003c/p>\n\u003cp>\u003ca href=\"https://calmatters.org/environment/climate-change/2024/01/california-solar-demand-plummets/\">Solar power\u003c/a> is a critical part of the \u003ca href=\"https://www.energy.ca.gov/news/2021-03/california-releases-report-charting-path-100-percent-clean-electricity\">state’s ambitious goal\u003c/a> to achieve 90% carbon-free electricity by 2035 and 100% by 2045. Large-scale and rooftop solar is projected to prove more than half of the grid’s power by 2045.\u003c/p>\n\u003cp>“Extending this exemption would nullify these positive outcomes and instead would increase homeowner energy costs at a time when many homeowners are facing rising electric rates and bills,” \u003ca href=\"https://www.gov.ca.gov/wp-content/uploads/2022/09/AB-1078-VETO.pdf?emrc=bded57\">Newsom wrote in his veto message (PDF)\u003c/a>.\u003c/p>\n\u003cp>Asked about this latest bill, Newsom’s press office responded that the governor doesn’t typically comment on pending legislation.\u003c/p>\n\u003cp>Joe Patterson said he hopes Newsom would support this bill, given that it’s more narrow than the one he vetoed in 2022, and because some Caldor Fire victims with poor insurance say they never received \u003ca href=\"https://www.latimes.com/california/story/2022-03-01/wildfire-survivors-decry-lack-of-fema-aid\">federal disaster relief cash to help them rebuild\u003c/a>.\u003c/p>\n\u003cfigure id=\"attachment_11982889\" class=\"wp-caption alignnone\" style=\"max-width: 1568px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11982889\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/04/102523-Paradise-Rebuild-AP-CM-02-copy.jpg\" alt=\"\" width=\"1568\" height=\"881\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/04/102523-Paradise-Rebuild-AP-CM-02-copy.jpg 1568w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/04/102523-Paradise-Rebuild-AP-CM-02-copy-800x449.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/04/102523-Paradise-Rebuild-AP-CM-02-copy-1020x573.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/04/102523-Paradise-Rebuild-AP-CM-02-copy-160x90.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/04/102523-Paradise-Rebuild-AP-CM-02-copy-1536x863.jpg 1536w\" sizes=\"(max-width: 1568px) 100vw, 1568px\">\u003cfigcaption class=\"wp-caption-text\">The sun sets over Valley Ridge Drive in Paradise, Butte County, on Oct. 26, 2023. Empty lots, homes under construction and residences built after the Camp Fire line the street. \u003ccite>(Noah Berger/AP Photo)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Meanwhile, the insurance crisis in California’s wildfire country has only gotten worse since.\u003c/p>\n\u003cp>After the devastating wildfire seasons of 2017 and 2018, private insurance companies have been dropping policies for hundreds of thousands of Californians, forcing many to join the state’s home insurer of last resort known as FAIR plan or risk going uninsured.\u003c/p>\n\u003cp>Just last month, State Farm announced it wasn’t renewing \u003ca href=\"https://www.ktvu.com/news/state-filing-shows-california-zip-codes-where-state-farm-plans-to-drop-policy-holders\">72,000 California home and apartment policies\u003c/a>.\u003c/p>\n\u003cp>In his \u003ca href=\"https://digitaldemocracy.calmatters.org/hearings/257724?t=1381&f=e9a00eed954ce559cf08ecd40c56158e\">testimony before the Natural Resources Committee\u003c/a>, Patterson said his district has seen skyrocketing numbers of constituents on the FAIR Plan.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"Related Stories ","postid":"science_1991404,science_1985611"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>“In 2019, we had roughly 8,100 households covered by the FAIR Plan in my district,” Joe Patterson told the committee. “Now, in 2023, we have 41,000 people covered by the FAIR Plan.”\u003c/p>\n\u003cp>He said the FAIR plan, at most, will only pay 10% of the costs to upgrade a destroyed home to the most current building codes including mandatory solar panels.\u003c/p>\n\u003cp>“And that 10% coverage really won’t go very far, especially to cover a solar system that costs about $25,000,” Patterson told the committee.\u003c/p>\n\u003cdiv class=\"cm-leg-card cm-leg-card-padding\">\n\u003cp>As Patterson testified, sitting beside him was El Dorado County Supervisor George Turnboo. His district includes Grizzly Flats, which was torched in the Caldor Fire.\u003c/p>\n\u003cp>“The costly burden on the Caldor Fire survivors trying to rebuild their lives is not worth the minimal benefit solar technology provides them in a very high snow and forest region,” Turnboo said.\u003c/p>\n\u003cp>Their arguments resonated with the 11 members of the Natural Resources Committee, including eight Democrats, who voted to pass the bill over objections from the solar industry.\u003c/p>\n\u003cp>“We understand the very sympathetic plight that some of these folks are in,” said Kim Stone, a lobbyist for \u003ca href=\"https://digitaldemocracy.calmatters.org/people/926\">the California Solar and Storage Association\u003c/a>. “But we don’t exempt them from other building code upgrade requirements.”\u003c/p>\n\u003c/div>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11982884/california-requires-solar-panels-on-new-homes-should-wildfire-victims-get-a-break","authors":["byline_news_11982884"],"categories":["news_31795","news_1758","news_19906","news_6266","news_8","news_356"],"tags":["news_19204","news_18545","news_1775","news_3187","news_1857","news_4463"],"affiliates":["news_18481"],"featImg":"news_11982891","label":"news_18481"},"news_11982856":{"type":"posts","id":"news_11982856","meta":{"index":"posts_1591205157","site":"news","id":"11982856","score":null,"sort":[1713006054000]},"guestAuthors":[],"slug":"tax-day-2024-from-credits-to-extensions-what-to-know-about-filing","title":"Tax Day 2024: From Credits to Extensions, What to Know About Filing","publishDate":1713006054,"format":"standard","headTitle":"Tax Day 2024: From Credits to Extensions, What to Know About Filing | KQED","labelTerm":{"term":253,"site":"news"},"content":"\u003cp>For something that’s legally required, taxes can be tough to figure out. The U.S. system is complicated — and unfortunately, most of us never learned how to do our taxes in school.\u003c/p>\n\u003cp>The deadline to file your taxes this year is April 15. But it helps to get started as soon as possible.\u003c/p>\n\u003cp>In this guide from Life Kit, we share six expert tips you should know about filing your taxes — from what steps to take as the deadline approaches to whether hiring a tax preparer is worth it.\u003c/p>\n\u003ch2>1. You don’t have to pay to file your taxes\u003c/h2>\n\u003cp>One free option: \u003ca href=\"https://www.irs.gov/individuals/tax-forms-and-publications\">Download your tax forms from the IRS website\u003c/a>, read the instructions, fill everything out and submit them by mail or online. That’s easier if someone like a parent has walked you through it before or if you have a simple tax situation, like one job in one state for the entire year.\u003c/p>\n\u003cp>[aside postID=news_11980776 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/GettyImages-1941725396_qut-1020x680.jpg']If your tax situation is more complex, there’s free online software you can use. If your adjusted gross income is $79,000 or less, you qualify for a program called IRS Free File. \u003ca href=\"https://apps.irs.gov/app/freeFile\">Find out more\u003c/a> at the IRS website.\u003c/p>\n\u003cp>If you don’t qualify, you can still get deals on online tax software, says Akeiva Ellis, a certified financial planner and the cofounder of \u003ca href=\"https://www.thebemusedtv.com/\">The Bemused\u003c/a>. She uses a service called Free Tax USA, which charges $14.99 per state and is free for the federal return.\u003c/p>\n\u003ch2>2. Consider tagging in a professional\u003c/h2>\n\u003cp>Another option is to go to an accountant or tax preparer. That might make sense if you’re doing your taxes for the first time or have had a major life change — like getting married or starting a new business. It may also make sense if you want to do some tax planning for the year ahead, says \u003ca href=\"https://aparnesscpa.com/\">Andrea Parness\u003c/a>, a CPA and certified tax coach.\u003c/p>\n\u003cp>If you’re looking for a pro, start by asking friends and family for referrals, she says. And then interview the person. Prepare questions for them: Will they be giving you tax advice or just filling out the forms and submitting them? Will you have an appointment? And what happens if they make a mistake?\u003c/p>\n\u003ch2>3. Gather your documents\u003c/h2>\n\u003cp>The \u003ca href=\"https://www.irs.gov/newsroom/things-to-remember-when-filing-a-2023-tax-return\">IRS has a list \u003c/a>of documents you might need. Tax preparers can give you one, too. Some common examples are W2 forms, which your employers send you by mail; student loan interest forms; bank interest forms; and any receipts for things you plan to take as a tax credit or deduction, like medical expenses or charitable donations.\u003c/p>\n\u003ch2>4. Look into tax credits and deductions\u003c/h2>\n\u003cp>Both are benefits that save you money on taxes. A tax credit lowers your final tax bill; it comes off the top of what you owe. A tax deduction, on the other hand, “reduces the amount of income you have to pay tax on,” Ellis says.\u003c/p>\n\u003cp>To figure out which credits and deductions you’re eligible for, look at \u003ca href=\"https://www.irs.gov/credits-and-deductions\">the IRS \u003c/a>\u003ca href=\"https://www.irs.gov/credits-and-deductions\">website\u003c/a>. If you use software, it’ll prompt you with questions to help figure this out. So will tax preparers.\u003c/p>\n\u003cp>But do your research. “You certainly always want to be able to educate yourself and not just depend on someone else asking you, ‘Hey, did you buy a new car? Did you do this? Did you put your kid in daycare?’ … Everybody runs their practice differently, and not everybody asks those questions,” Parness says.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003ch2>5. You can file an extension — but you still have to pay\u003c/h2>\n\u003cp>If you think you won’t make the April 15 deadline this year, \u003ca href=\"https://www.irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return\">file an extension\u003c/a> with the IRS online. Then, you’ll have until mid-October to file the forms. But if you owe money, you still need to estimate how much and pay it now, or you might get penalized later.\u003c/p>\n\u003ch2>6. Plan ahead for next year\u003c/h2>\n\u003cp>Think about what went wrong on your tax return this year. For instance, did you end up owing a ton of money? Did you get a huge refund? That often means you gave the federal government an interest-free loan. You can make changes now so that doesn’t happen next year. For instance, “ask your employer for a W-4 form so you can properly tell them how much taxes to take out of your check,” Ellis says.\u003c/p>\n\u003cp>Also, look out for tax credits, deductions or rebates that you’re newly eligible for. A little planning and research now could lower your next tax bill.\u003c/p>\n\u003cp>\u003cem>Listen to Life Kit on\u003c/em>\u003ca href=\"http://n.pr/3LdRb0X\">\u003cem> Apple Podcasts\u003c/em>\u003c/a>\u003cem> and\u003c/em>\u003ca href=\"http://n.pr/3K3xVln\">\u003cem> Spotify\u003c/em>\u003c/a>\u003cem>, or sign up for our\u003c/em>\u003ca href=\"http://n.pr/3xN1tB9\">\u003cem> newsletter\u003c/em>\u003c/a>\u003cem>.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"In this guide from NPR's Life Kit, we share six expert tips you should know about filing your taxes.","status":"publish","parent":0,"modified":1712969786,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":18,"wordCount":829},"headData":{"title":"Tax Day 2024: From Credits to Extensions, What to Know About Filing | KQED","description":"In this guide from NPR's Life Kit, we share six expert tips you should know about filing your taxes.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"sticky":false,"nprByline":"\u003ca href=\"https://www.npr.org/people/1123235730/marielle-segarra\">Marielle Segarra\u003c/a>","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/11982856/tax-day-2024-from-credits-to-extensions-what-to-know-about-filing","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>For something that’s legally required, taxes can be tough to figure out. The U.S. system is complicated — and unfortunately, most of us never learned how to do our taxes in school.\u003c/p>\n\u003cp>The deadline to file your taxes this year is April 15. But it helps to get started as soon as possible.\u003c/p>\n\u003cp>In this guide from Life Kit, we share six expert tips you should know about filing your taxes — from what steps to take as the deadline approaches to whether hiring a tax preparer is worth it.\u003c/p>\n\u003ch2>1. You don’t have to pay to file your taxes\u003c/h2>\n\u003cp>One free option: \u003ca href=\"https://www.irs.gov/individuals/tax-forms-and-publications\">Download your tax forms from the IRS website\u003c/a>, read the instructions, fill everything out and submit them by mail or online. That’s easier if someone like a parent has walked you through it before or if you have a simple tax situation, like one job in one state for the entire year.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11980776","hero":"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/GettyImages-1941725396_qut-1020x680.jpg","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>If your tax situation is more complex, there’s free online software you can use. If your adjusted gross income is $79,000 or less, you qualify for a program called IRS Free File. \u003ca href=\"https://apps.irs.gov/app/freeFile\">Find out more\u003c/a> at the IRS website.\u003c/p>\n\u003cp>If you don’t qualify, you can still get deals on online tax software, says Akeiva Ellis, a certified financial planner and the cofounder of \u003ca href=\"https://www.thebemusedtv.com/\">The Bemused\u003c/a>. She uses a service called Free Tax USA, which charges $14.99 per state and is free for the federal return.\u003c/p>\n\u003ch2>2. Consider tagging in a professional\u003c/h2>\n\u003cp>Another option is to go to an accountant or tax preparer. That might make sense if you’re doing your taxes for the first time or have had a major life change — like getting married or starting a new business. It may also make sense if you want to do some tax planning for the year ahead, says \u003ca href=\"https://aparnesscpa.com/\">Andrea Parness\u003c/a>, a CPA and certified tax coach.\u003c/p>\n\u003cp>If you’re looking for a pro, start by asking friends and family for referrals, she says. And then interview the person. Prepare questions for them: Will they be giving you tax advice or just filling out the forms and submitting them? Will you have an appointment? And what happens if they make a mistake?\u003c/p>\n\u003ch2>3. Gather your documents\u003c/h2>\n\u003cp>The \u003ca href=\"https://www.irs.gov/newsroom/things-to-remember-when-filing-a-2023-tax-return\">IRS has a list \u003c/a>of documents you might need. Tax preparers can give you one, too. Some common examples are W2 forms, which your employers send you by mail; student loan interest forms; bank interest forms; and any receipts for things you plan to take as a tax credit or deduction, like medical expenses or charitable donations.\u003c/p>\n\u003ch2>4. Look into tax credits and deductions\u003c/h2>\n\u003cp>Both are benefits that save you money on taxes. A tax credit lowers your final tax bill; it comes off the top of what you owe. A tax deduction, on the other hand, “reduces the amount of income you have to pay tax on,” Ellis says.\u003c/p>\n\u003cp>To figure out which credits and deductions you’re eligible for, look at \u003ca href=\"https://www.irs.gov/credits-and-deductions\">the IRS \u003c/a>\u003ca href=\"https://www.irs.gov/credits-and-deductions\">website\u003c/a>. If you use software, it’ll prompt you with questions to help figure this out. So will tax preparers.\u003c/p>\n\u003cp>But do your research. “You certainly always want to be able to educate yourself and not just depend on someone else asking you, ‘Hey, did you buy a new car? Did you do this? Did you put your kid in daycare?’ … Everybody runs their practice differently, and not everybody asks those questions,” Parness says.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003ch2>5. You can file an extension — but you still have to pay\u003c/h2>\n\u003cp>If you think you won’t make the April 15 deadline this year, \u003ca href=\"https://www.irs.gov/forms-pubs/extension-of-time-to-file-your-tax-return\">file an extension\u003c/a> with the IRS online. Then, you’ll have until mid-October to file the forms. But if you owe money, you still need to estimate how much and pay it now, or you might get penalized later.\u003c/p>\n\u003ch2>6. Plan ahead for next year\u003c/h2>\n\u003cp>Think about what went wrong on your tax return this year. For instance, did you end up owing a ton of money? Did you get a huge refund? That often means you gave the federal government an interest-free loan. You can make changes now so that doesn’t happen next year. For instance, “ask your employer for a W-4 form so you can properly tell them how much taxes to take out of your check,” Ellis says.\u003c/p>\n\u003cp>Also, look out for tax credits, deductions or rebates that you’re newly eligible for. A little planning and research now could lower your next tax bill.\u003c/p>\n\u003cp>\u003cem>Listen to Life Kit on\u003c/em>\u003ca href=\"http://n.pr/3LdRb0X\">\u003cem> Apple Podcasts\u003c/em>\u003c/a>\u003cem> and\u003c/em>\u003ca href=\"http://n.pr/3K3xVln\">\u003cem> Spotify\u003c/em>\u003c/a>\u003cem>, or sign up for our\u003c/em>\u003ca href=\"http://n.pr/3xN1tB9\">\u003cem> newsletter\u003c/em>\u003c/a>\u003cem>.\u003c/em>\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11982856/tax-day-2024-from-credits-to-extensions-what-to-know-about-filing","authors":["byline_news_11982856"],"categories":["news_1758","news_8"],"tags":["news_32707","news_27626","news_423"],"affiliates":["news_253"],"featImg":"news_11982862","label":"news_253"},"news_11981294":{"type":"posts","id":"news_11981294","meta":{"index":"posts_1591205157","site":"news","id":"11981294","score":null,"sort":[1711998011000]},"guestAuthors":[],"slug":"what-to-know-about-californias-fast-food-wage-increase","title":"What to Know About California's Fast-Food Wage Increase","publishDate":1711998011,"format":"standard","headTitle":"What to Know About California’s Fast-Food Wage Increase | KQED","labelTerm":{},"content":"\u003cp>Starting Monday, April 1, fast food restaurants operating in California will be required to raise the minimum wage for their workers to $20 per hour — \u003ca href=\"https://www.dir.ca.gov/dlse/minimum_wage.htm\">an increase of four dollars an hour from the previous minimum wage\u003c/a>. Employers are \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm#:~:text=When%20does%20the%20minimum%20wage,Yes.\">not allowed to include tips \u003c/a>in the wage increase.\u003c/p>\n\u003cp>California lawmakers approved AB 1228 last September, which ordered an increase in the wages of the state’s fast food workers and also established a Fast Food Council which is \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm#:~:text=When%20does%20the%20minimum%20wage,Yes.\">“empowered both to make future increases to the minimum wage and to adopt other minimum employment standards for fast food restaurants.”\u003c/a>\u003c/p>\n\u003cp>“Living wages and worker safety should be a priority for corporate fast-food companies,” said Joseph Bryan, the Executive Vice President of the Service Employees International Union in a statement. “The vast majority of fast-food locations in California operate under the most profitable brands in the world.”\u003c/p>\n\u003cp>“Those corporations need to pay their fair share and provide their operators with the resources they need to pay their workers a living wage without cutting jobs or passing the cost to consumers,” said Bryan.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>But who exactly is eligible for this new wage rise? And what can you do if you’re a fast food worker and your boss isn’t providing you with this increased wage? Keep reading for what to know about California’s fast food minimum wage increase.\u003c/p>\n\u003cp>\u003cstrong>Jump straight to: \u003c/strong>\u003c/p>\n\u003cul>\n\u003cli>\u003ca href=\"#one\">Can all fast food workers get this $20 minimum wage?\u003c/a>\u003c/li>\n\u003cli>\u003ca href=\"#two\">Which fast food workers are ineligible for the wage rise?\u003c/a>\u003c/li>\n\u003cli>\u003ca href=\"#three\">My boss is now refusing to pay me more. What can I do?\u003c/a>\u003c/li>\n\u003c/ul>\n\u003ch2>\u003ca id=\"one\">\u003c/a>Which fast food workers will receive California’s minimum wage increase?\u003c/h2>\n\u003cp>This new law applies to all fast food establishments that have sixty or more locations throughout the nation with at least one of locations in California, according to Veronica Chavez, the directing attorney at legal services nonprofit \u003ca href=\"https://www.centrolegal.org/\">Centro Legal de la Raza \u003c/a>in Oakland.\u003c/p>\n\u003cp>But what counts as “fast food” here? The state says that to be subject to the new $20 minimum wage rise,\u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm\"> the establishment must be a “limited-service” restaurant in California\u003c/a>: That is, “one that offers limited or no table service, where the customers order food or beverage items and pay for those items before the items are consumed” and which is “primarily engaged in selling food and beverages for immediate consumption.”\u003c/p>\n\u003cp>Chavez said restaurants that should comply would also include places that people may not typically associate with fast food, including boba tea shops, cafes and ice cream parlors. The state is clear that \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm\">this wage rise “does not depend on what type of food or beverage an establishment sells.”\u003c/a>\u003c/p>\n\u003cp>\u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm\">Read more information about which establishments count as “fast food.”\u003c/a>\u003c/p>\n\u003ch2>\u003ca id=\"two\">\u003c/a>Are there exemptions to the fast food minimum wage increase?\u003c/h2>\n\u003cp>\u003ca href=\"https://calmatters.org/politics/capitol/2024/03/california-minimum-wage-fast-food-workers/\">The state’s exemptions from the new law \u003c/a>are already causing some confusion. They include:\u003c/p>\n\u003cp>\u003cstrong>Restaurants \u003cem>inside \u003c/em>grocery stores\u003c/strong>\u003c/p>\n\u003cp>This means that if you’re employed by a grocery store — even if you’re assigned to the fast food restaurant \u003cem>within \u003c/em>that store — you aren’t eligible for this minimum wage raise. But if you’re employed at a fast food restaurant that’s within another kind of store — not a grocery store — \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm\">the state says you are in fact eligible for the fast food raise\u003c/a>, but only for the hours you work inside the fast food restaurant itself.\u003c/p>\n\u003cp>\u003cstrong>Places that have a bakery onsite that produce bread to sell by itself \u003c/strong>\u003c/p>\n\u003cp>If an establishment produces its own bread that is sold as a standalone item on its menu, then \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm\">the state says that location is exempt from the new fast food minimum wage rise\u003c/a> — as long as that menu item has been offered to customers since at least Sept. 15, 2023.\u003c/p>\n\u003cp>[aside label=\"Related Stories\" postID=\"news_11979186,news_11977956,news_11978492\"]But if your workplace makes its own bread that’s then sold at that location in the form of sandwiches or hamburgers — with no standalone bread items also on the menu — then the establishment is not exempt from paying its workers the $20 minimum wage.\u003c/p>\n\u003cp>According to the state, also exempted under “bread” are establishments that “sell stand-alone items weighing less than one-half pound after cooling, such as most muffins, croissants, scones, rolls, or buns, but do not sell bread weighing at least one-half pound after cooling.”\u003c/p>\n\u003cp>The bread exemption has caught the attention of many, with Governor Gavin Newsom’s critics claiming that he was \u003ca href=\"https://www.kqed.org/news/11978941/is-panera-gate-a-real-scandal-or-politics-as-usual\">sparing his donor Greg Flynn — the owner of Panera Bread — from the new law\u003c/a>. However, Flynn stated earlier this month that his chain\u003ca href=\"https://www.kqed.org/news/11978492/newsom-campaign-donor-to-follow-minimum-wage-law-at-his-panera-bread-restaurants-after-allegations-of-favoritism\"> will comply with the new law\u003c/a>.\u003c/p>\n\u003cp>\u003cstrong>Fast food establishments within places like airports \u003c/strong>\u003c/p>\n\u003cp>\u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240ab610?slug=CA_202320240AB610&_gl=1*13kro3l*_ga*MjAzMDA3NDIxMy4xNzA1Njg2OTE4*_ga_5TKXNLE5NK*MTcxMTY1ODkzNy4xMS4xLjE3MTE2NTg5NjkuMjguMC4w*_ga_GNY4L81DZE*MTcxMTY1ODkzOC4xMS4xLjE3MTE2NTg5NDMuMC4wLjA.\">The newest exemption to the fast food wage rise \u003c/a>was signed into law by Gov. Gavin Newsom just last week, exempting fast food establishments in places like airports, hotels, large event centers, theme parks and museums.\u003c/p>\n\u003cp>The last-minute bill states that these places “generally do not share the same characteristics as traditional fast food restaurants that are part of national fast food chains” on account of their factors including their “distinct economics and a captive customer base.”\u003c/p>\n\u003ch2>\u003ca id=\"three\">\u003c/a>I’m a fast food worker who’s eligible for the minimum wage increase, but my boss isn’t raising my pay. What can I do?\u003c/h2>\n\u003cp>AB 1228 specifically states that California’s Labor Commissioner will be enforcing the new minimum wage law, said Centro Legal de la Raza’s Chavez. This agency investigates wage theft and wage violations.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"Joseph Bryan, executive vice president, Service Employees International Union\"]‘Those corporations need to pay their fair share and provide their operators with the resources they need to pay their workers a living wage without cutting jobs or passing the cost to consumers.’[/pullquote]First, check your pay stubs, paying particular attention to the section that deals with your hourly wage to see if your employer is adhering to the new $20 minimum wage. If you get paid in cash, look over those earnings carefully too. \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm\">Remember, your employer is not allowed to include tips\u003c/a> — or meal or lodging credits employees might receive — in the new minimum wage rise, if you’re eligible.\u003c/p>\n\u003cp>But what if your boss is trying to do that, is falsely claiming your workplace is exempt from the new law, or is straight-up refusing to pay you the raise you’re owed as an eligible fast food worker?\u003c/p>\n\u003cp>Chavez said that if your employer is not complying with the new law, you can:\u003c/p>\n\u003cul>\n\u003cli>\u003ca href=\"https://www.dir.ca.gov/dlse/HowToFileWageClaim.htm\">File an individual wage claim\u003c/a> through the Labor Commissioner’s Office.\u003c/li>\n\u003cli>Pursue action or a lawsuit in civil court. (Employees can file an \u003ca href=\"https://www.dir.ca.gov/dlse/HowToFileWageClaim.htm\">individual wage claim through the Labor Commissioner’s website\u003c/a>.) File \u003ca href=\"https://www.dir.ca.gov/dlse/HowToReportViolationtoBOFE.htm\">a Report of Labor Law Violation\u003c/a> (although you should be aware that this particular report \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm\">“does not pursue individual claims, but may investigate and cite the employer.”\u003c/a>)\u003c/li>\n\u003c/ul>\n\u003cp>Fast food employers must also publicly \u003ca href=\"https://www.dir.ca.gov/iwc/MW-2024-FF-SUPPLEMENT.pdf\">post a notice of the minimum wage increase inside the establishment (PDF)\u003c/a>.\u003c/p>\n\u003cp>Chavez said she recommended having communications with an employer in writing, “so that there is evidence of the employer failing to comply or whatever the response is … but hopefully just a conversation with them in person and then following up via text or email will suffice and help get the employer to make the necessary change.”\u003c/p>\n\u003cp>Some workers may feel extra nervous about having these complicated conversations, especially if they fear that their employer will retaliate against them by cutting their wages or hours or firing them. If an employee is worried about retaliation, Chavez said one could file \u003ca href=\"https://www.dir.ca.gov/dlse/rci_osha_complaint.htm\">a compliance complaint with the Labor Commissioner\u003c/a>. You can also call (714) 558-4913 or email \u003ca href=\"mailto:osharetaliation@dir.ca.gov\">osharetaliation@dir.ca.gov\u003c/a>. Legal protections against retaliation in California also extend to undocumented workers.\u003c/p>\n\u003cp>Bay Area organizations that offer free legal aid to workers include:\u003c/p>\n\u003cul>\n\u003cli>\u003ca href=\"https://legalaidatwork.org/clinics-and-helplines/\">Legal Aid at Work\u003c/a>: (415) 864-8208\u003c/li>\n\u003cli>\u003ca href=\"https://www.advancingjustice-alc.org/get-help\">Asian Americans Advancing Justice/Asian Law Caucus\u003c/a>: (415) 896-1701\u003c/li>\n\u003cli>\u003ca href=\"https://www.centrolegal.org/\">Centro Legal de la Raza\u003c/a>: (510) 437-1554\u003c/li>\n\u003c/ul>\n\u003ch2>\u003cstrong>What is this ‘Fast Food Council’?\u003c/strong>\u003c/h2>\n\u003cp>The new minimum wage law for fast food workers also created a Fast Food Council, which will meet to discuss employment standards within the industry like working hours and conditions – and could potentially set a new minimum wage increase from 2025 and onwards.\u003c/p>\n\u003cp>According to \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm#:~:text=When%20does%20the%20minimum%20wage,Yes.\">the state\u003c/a>, the “hourly minimum wage established by the Council can increase every year by either 3.5% or the increase in the consumer price index, whichever is smaller. The Fast Food Council can establish a single statewide minimum wage for fast food restaurant employees or vary the minimum wage by region of the State.”\u003c/p>\n\u003cp>The Council \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm#:~:text=When%20does%20the%20minimum%20wage,Yes.\">includes not just representatives from the industry and workers advocates but also fast food employees\u003c/a> themselves. The Council will also have two non-voting members from the Department of Industrial Relations and the Governor’s Office of Business and Economic Development, and meetings will all be open to the public.\u003c/p>\n\u003cp>“[The Fast Food Council] is really unique to California and I think it’s great,” Chavez said. “We know that restaurant workers are unfortunately some of the lowest paid workers who often have safety issues — who encounter health violations and have to work through all that.”\u003c/p>\n\u003ch2>\u003cstrong>What could the future look like for the fast food minimum wage?\u003c/strong>\u003c/h2>\n\u003cp>“The minimum wage really is not something that results in livable wages,” said Chavez, who noted that “poverty wages” resulted in workers needing to take on multiple jobs and really struggle.” According to the Massachusetts Institute of Technology’s Living Wage Calculation for California, \u003ca href=\"https://livingwage.mit.edu/states/06\">an adult with no children would need to make $27.32\u003c/a> per hour in the state to make a living wage. An adult with a child would need to make $47.96 per hour.\u003c/p>\n\u003cp>The Roosevelt Institute think tank also \u003ca href=\"https://rooseveltinstitute.org/publications/fast-food-industry-profiteering/\">released an analysis\u003c/a> stating that it was possible for establishments to pay their employees more without increasing consumer prices — \u003ca href=\"https://www.latimes.com/business/story/2024-03-27/fast-food-minimum-wage\">something that some fast food business representatives in California have claimed they’ll now have to do\u003c/a> in the light of the April 1 minimum wage hike.\u003c/p>\n\u003cp>“Between 2014 and 2023, \u003ca href=\"https://rooseveltinstitute.org/publications/fast-food-industry-profiteering/\">fast-food prices increased by 46.8 percent compared to 28.7 percent for the average of all prices\u003c/a>,” the Roosevelt Institute analysis states. “Evidence of fast-food firms’ recent profiteering makes it clear that the upcoming implementation of a fast-food minimum wage of $20 per hour in California will not necessitate price hikes or employment losses, because profits in the industry are sufficiently high to absorb the greater operating costs.”\u003c/p>\n\u003cp>Joseph Bryan, the Executive Vice President of the Service Employees International Union and now member of the new Food Council said employers made price hikes and job cut threats when \u003ca href=\"https://www.forbes.com/sites/chuckdevore/2018/08/06/california-passed-15-an-hour-two-years-ago-hows-it-working/?sh=6eb96624fa4f\">California set the minimum wage to $15 per hou\u003c/a>r.\u003c/p>\n\u003cp>“The minimum wage in California has gone up every year since 2015,” said Bryan. “On the same timeline, fast food restaurants in California added 142,000 jobs.”\u003c/p>\n\u003cp>“The top nine publicly traded fast food companies alone took in nearly $25 billion in profits in 2023,” he said, adding that “multiple studies” had demonstrated that “higher wages lead to increased worker retention, recruitment and job growth.”\u003c/p>\n\u003cp>\u003cem>KQED’s Carly Severn and Carlos Cabrera-Lomelí contributed to this story.\u003c/em>\u003c/p>\n\u003cp> \u003c/p>\n\u003cp> \u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"Who's eligible for this new wage rise? And what can you do if you’re a fast-food worker and your boss isn’t providing you with this increased wage?","status":"publish","parent":0,"modified":1711999468,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":42,"wordCount":1983},"headData":{"title":"What to Know About California's Fast-Food Wage Increase | KQED","description":"Who's eligible for this new wage rise? And what can you do if you’re a fast-food worker and your boss isn’t providing you with this increased wage?","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"source":"Food","sourceUrl":"https://www.kqed.org/food","sticky":false,"excludeFromSiteSearch":"Include","articleAge":"0","path":"/news/11981294/what-to-know-about-californias-fast-food-wage-increase","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Starting Monday, April 1, fast food restaurants operating in California will be required to raise the minimum wage for their workers to $20 per hour — \u003ca href=\"https://www.dir.ca.gov/dlse/minimum_wage.htm\">an increase of four dollars an hour from the previous minimum wage\u003c/a>. Employers are \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm#:~:text=When%20does%20the%20minimum%20wage,Yes.\">not allowed to include tips \u003c/a>in the wage increase.\u003c/p>\n\u003cp>California lawmakers approved AB 1228 last September, which ordered an increase in the wages of the state’s fast food workers and also established a Fast Food Council which is \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm#:~:text=When%20does%20the%20minimum%20wage,Yes.\">“empowered both to make future increases to the minimum wage and to adopt other minimum employment standards for fast food restaurants.”\u003c/a>\u003c/p>\n\u003cp>“Living wages and worker safety should be a priority for corporate fast-food companies,” said Joseph Bryan, the Executive Vice President of the Service Employees International Union in a statement. “The vast majority of fast-food locations in California operate under the most profitable brands in the world.”\u003c/p>\n\u003cp>“Those corporations need to pay their fair share and provide their operators with the resources they need to pay their workers a living wage without cutting jobs or passing the cost to consumers,” said Bryan.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>But who exactly is eligible for this new wage rise? And what can you do if you’re a fast food worker and your boss isn’t providing you with this increased wage? Keep reading for what to know about California’s fast food minimum wage increase.\u003c/p>\n\u003cp>\u003cstrong>Jump straight to: \u003c/strong>\u003c/p>\n\u003cul>\n\u003cli>\u003ca href=\"#one\">Can all fast food workers get this $20 minimum wage?\u003c/a>\u003c/li>\n\u003cli>\u003ca href=\"#two\">Which fast food workers are ineligible for the wage rise?\u003c/a>\u003c/li>\n\u003cli>\u003ca href=\"#three\">My boss is now refusing to pay me more. What can I do?\u003c/a>\u003c/li>\n\u003c/ul>\n\u003ch2>\u003ca id=\"one\">\u003c/a>Which fast food workers will receive California’s minimum wage increase?\u003c/h2>\n\u003cp>This new law applies to all fast food establishments that have sixty or more locations throughout the nation with at least one of locations in California, according to Veronica Chavez, the directing attorney at legal services nonprofit \u003ca href=\"https://www.centrolegal.org/\">Centro Legal de la Raza \u003c/a>in Oakland.\u003c/p>\n\u003cp>But what counts as “fast food” here? The state says that to be subject to the new $20 minimum wage rise,\u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm\"> the establishment must be a “limited-service” restaurant in California\u003c/a>: That is, “one that offers limited or no table service, where the customers order food or beverage items and pay for those items before the items are consumed” and which is “primarily engaged in selling food and beverages for immediate consumption.”\u003c/p>\n\u003cp>Chavez said restaurants that should comply would also include places that people may not typically associate with fast food, including boba tea shops, cafes and ice cream parlors. The state is clear that \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm\">this wage rise “does not depend on what type of food or beverage an establishment sells.”\u003c/a>\u003c/p>\n\u003cp>\u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm\">Read more information about which establishments count as “fast food.”\u003c/a>\u003c/p>\n\u003ch2>\u003ca id=\"two\">\u003c/a>Are there exemptions to the fast food minimum wage increase?\u003c/h2>\n\u003cp>\u003ca href=\"https://calmatters.org/politics/capitol/2024/03/california-minimum-wage-fast-food-workers/\">The state’s exemptions from the new law \u003c/a>are already causing some confusion. They include:\u003c/p>\n\u003cp>\u003cstrong>Restaurants \u003cem>inside \u003c/em>grocery stores\u003c/strong>\u003c/p>\n\u003cp>This means that if you’re employed by a grocery store — even if you’re assigned to the fast food restaurant \u003cem>within \u003c/em>that store — you aren’t eligible for this minimum wage raise. But if you’re employed at a fast food restaurant that’s within another kind of store — not a grocery store — \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm\">the state says you are in fact eligible for the fast food raise\u003c/a>, but only for the hours you work inside the fast food restaurant itself.\u003c/p>\n\u003cp>\u003cstrong>Places that have a bakery onsite that produce bread to sell by itself \u003c/strong>\u003c/p>\n\u003cp>If an establishment produces its own bread that is sold as a standalone item on its menu, then \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm\">the state says that location is exempt from the new fast food minimum wage rise\u003c/a> — as long as that menu item has been offered to customers since at least Sept. 15, 2023.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"Related Stories ","postid":"news_11979186,news_11977956,news_11978492"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>But if your workplace makes its own bread that’s then sold at that location in the form of sandwiches or hamburgers — with no standalone bread items also on the menu — then the establishment is not exempt from paying its workers the $20 minimum wage.\u003c/p>\n\u003cp>According to the state, also exempted under “bread” are establishments that “sell stand-alone items weighing less than one-half pound after cooling, such as most muffins, croissants, scones, rolls, or buns, but do not sell bread weighing at least one-half pound after cooling.”\u003c/p>\n\u003cp>The bread exemption has caught the attention of many, with Governor Gavin Newsom’s critics claiming that he was \u003ca href=\"https://www.kqed.org/news/11978941/is-panera-gate-a-real-scandal-or-politics-as-usual\">sparing his donor Greg Flynn — the owner of Panera Bread — from the new law\u003c/a>. However, Flynn stated earlier this month that his chain\u003ca href=\"https://www.kqed.org/news/11978492/newsom-campaign-donor-to-follow-minimum-wage-law-at-his-panera-bread-restaurants-after-allegations-of-favoritism\"> will comply with the new law\u003c/a>.\u003c/p>\n\u003cp>\u003cstrong>Fast food establishments within places like airports \u003c/strong>\u003c/p>\n\u003cp>\u003ca href=\"https://digitaldemocracy.calmatters.org/bills/ca_202320240ab610?slug=CA_202320240AB610&_gl=1*13kro3l*_ga*MjAzMDA3NDIxMy4xNzA1Njg2OTE4*_ga_5TKXNLE5NK*MTcxMTY1ODkzNy4xMS4xLjE3MTE2NTg5NjkuMjguMC4w*_ga_GNY4L81DZE*MTcxMTY1ODkzOC4xMS4xLjE3MTE2NTg5NDMuMC4wLjA.\">The newest exemption to the fast food wage rise \u003c/a>was signed into law by Gov. Gavin Newsom just last week, exempting fast food establishments in places like airports, hotels, large event centers, theme parks and museums.\u003c/p>\n\u003cp>The last-minute bill states that these places “generally do not share the same characteristics as traditional fast food restaurants that are part of national fast food chains” on account of their factors including their “distinct economics and a captive customer base.”\u003c/p>\n\u003ch2>\u003ca id=\"three\">\u003c/a>I’m a fast food worker who’s eligible for the minimum wage increase, but my boss isn’t raising my pay. What can I do?\u003c/h2>\n\u003cp>AB 1228 specifically states that California’s Labor Commissioner will be enforcing the new minimum wage law, said Centro Legal de la Raza’s Chavez. This agency investigates wage theft and wage violations.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘Those corporations need to pay their fair share and provide their operators with the resources they need to pay their workers a living wage without cutting jobs or passing the cost to consumers.’","name":"pullquote","attributes":{"named":{"align":"right","size":"medium","citation":"Joseph Bryan, executive vice president, Service Employees International Union","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>First, check your pay stubs, paying particular attention to the section that deals with your hourly wage to see if your employer is adhering to the new $20 minimum wage. If you get paid in cash, look over those earnings carefully too. \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm\">Remember, your employer is not allowed to include tips\u003c/a> — or meal or lodging credits employees might receive — in the new minimum wage rise, if you’re eligible.\u003c/p>\n\u003cp>But what if your boss is trying to do that, is falsely claiming your workplace is exempt from the new law, or is straight-up refusing to pay you the raise you’re owed as an eligible fast food worker?\u003c/p>\n\u003cp>Chavez said that if your employer is not complying with the new law, you can:\u003c/p>\n\u003cul>\n\u003cli>\u003ca href=\"https://www.dir.ca.gov/dlse/HowToFileWageClaim.htm\">File an individual wage claim\u003c/a> through the Labor Commissioner’s Office.\u003c/li>\n\u003cli>Pursue action or a lawsuit in civil court. (Employees can file an \u003ca href=\"https://www.dir.ca.gov/dlse/HowToFileWageClaim.htm\">individual wage claim through the Labor Commissioner’s website\u003c/a>.) File \u003ca href=\"https://www.dir.ca.gov/dlse/HowToReportViolationtoBOFE.htm\">a Report of Labor Law Violation\u003c/a> (although you should be aware that this particular report \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm\">“does not pursue individual claims, but may investigate and cite the employer.”\u003c/a>)\u003c/li>\n\u003c/ul>\n\u003cp>Fast food employers must also publicly \u003ca href=\"https://www.dir.ca.gov/iwc/MW-2024-FF-SUPPLEMENT.pdf\">post a notice of the minimum wage increase inside the establishment (PDF)\u003c/a>.\u003c/p>\n\u003cp>Chavez said she recommended having communications with an employer in writing, “so that there is evidence of the employer failing to comply or whatever the response is … but hopefully just a conversation with them in person and then following up via text or email will suffice and help get the employer to make the necessary change.”\u003c/p>\n\u003cp>Some workers may feel extra nervous about having these complicated conversations, especially if they fear that their employer will retaliate against them by cutting their wages or hours or firing them. If an employee is worried about retaliation, Chavez said one could file \u003ca href=\"https://www.dir.ca.gov/dlse/rci_osha_complaint.htm\">a compliance complaint with the Labor Commissioner\u003c/a>. You can also call (714) 558-4913 or email \u003ca href=\"mailto:osharetaliation@dir.ca.gov\">osharetaliation@dir.ca.gov\u003c/a>. Legal protections against retaliation in California also extend to undocumented workers.\u003c/p>\n\u003cp>Bay Area organizations that offer free legal aid to workers include:\u003c/p>\n\u003cul>\n\u003cli>\u003ca href=\"https://legalaidatwork.org/clinics-and-helplines/\">Legal Aid at Work\u003c/a>: (415) 864-8208\u003c/li>\n\u003cli>\u003ca href=\"https://www.advancingjustice-alc.org/get-help\">Asian Americans Advancing Justice/Asian Law Caucus\u003c/a>: (415) 896-1701\u003c/li>\n\u003cli>\u003ca href=\"https://www.centrolegal.org/\">Centro Legal de la Raza\u003c/a>: (510) 437-1554\u003c/li>\n\u003c/ul>\n\u003ch2>\u003cstrong>What is this ‘Fast Food Council’?\u003c/strong>\u003c/h2>\n\u003cp>The new minimum wage law for fast food workers also created a Fast Food Council, which will meet to discuss employment standards within the industry like working hours and conditions – and could potentially set a new minimum wage increase from 2025 and onwards.\u003c/p>\n\u003cp>According to \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm#:~:text=When%20does%20the%20minimum%20wage,Yes.\">the state\u003c/a>, the “hourly minimum wage established by the Council can increase every year by either 3.5% or the increase in the consumer price index, whichever is smaller. The Fast Food Council can establish a single statewide minimum wage for fast food restaurant employees or vary the minimum wage by region of the State.”\u003c/p>\n\u003cp>The Council \u003ca href=\"https://www.dir.ca.gov/dlse/Fast-Food-Minimum-Wage-FAQ.htm#:~:text=When%20does%20the%20minimum%20wage,Yes.\">includes not just representatives from the industry and workers advocates but also fast food employees\u003c/a> themselves. The Council will also have two non-voting members from the Department of Industrial Relations and the Governor’s Office of Business and Economic Development, and meetings will all be open to the public.\u003c/p>\n\u003cp>“[The Fast Food Council] is really unique to California and I think it’s great,” Chavez said. “We know that restaurant workers are unfortunately some of the lowest paid workers who often have safety issues — who encounter health violations and have to work through all that.”\u003c/p>\n\u003ch2>\u003cstrong>What could the future look like for the fast food minimum wage?\u003c/strong>\u003c/h2>\n\u003cp>“The minimum wage really is not something that results in livable wages,” said Chavez, who noted that “poverty wages” resulted in workers needing to take on multiple jobs and really struggle.” According to the Massachusetts Institute of Technology’s Living Wage Calculation for California, \u003ca href=\"https://livingwage.mit.edu/states/06\">an adult with no children would need to make $27.32\u003c/a> per hour in the state to make a living wage. An adult with a child would need to make $47.96 per hour.\u003c/p>\n\u003cp>The Roosevelt Institute think tank also \u003ca href=\"https://rooseveltinstitute.org/publications/fast-food-industry-profiteering/\">released an analysis\u003c/a> stating that it was possible for establishments to pay their employees more without increasing consumer prices — \u003ca href=\"https://www.latimes.com/business/story/2024-03-27/fast-food-minimum-wage\">something that some fast food business representatives in California have claimed they’ll now have to do\u003c/a> in the light of the April 1 minimum wage hike.\u003c/p>\n\u003cp>“Between 2014 and 2023, \u003ca href=\"https://rooseveltinstitute.org/publications/fast-food-industry-profiteering/\">fast-food prices increased by 46.8 percent compared to 28.7 percent for the average of all prices\u003c/a>,” the Roosevelt Institute analysis states. “Evidence of fast-food firms’ recent profiteering makes it clear that the upcoming implementation of a fast-food minimum wage of $20 per hour in California will not necessitate price hikes or employment losses, because profits in the industry are sufficiently high to absorb the greater operating costs.”\u003c/p>\n\u003cp>Joseph Bryan, the Executive Vice President of the Service Employees International Union and now member of the new Food Council said employers made price hikes and job cut threats when \u003ca href=\"https://www.forbes.com/sites/chuckdevore/2018/08/06/california-passed-15-an-hour-two-years-ago-hows-it-working/?sh=6eb96624fa4f\">California set the minimum wage to $15 per hou\u003c/a>r.\u003c/p>\n\u003cp>“The minimum wage in California has gone up every year since 2015,” said Bryan. “On the same timeline, fast food restaurants in California added 142,000 jobs.”\u003c/p>\n\u003cp>“The top nine publicly traded fast food companies alone took in nearly $25 billion in profits in 2023,” he said, adding that “multiple studies” had demonstrated that “higher wages lead to increased worker retention, recruitment and job growth.”\u003c/p>\n\u003cp>\u003cem>KQED’s Carly Severn and Carlos Cabrera-Lomelí contributed to this story.\u003c/em>\u003c/p>\n\u003cp> \u003c/p>\n\u003cp> \u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11981294/what-to-know-about-californias-fast-food-wage-increase","authors":["11867"],"categories":["news_31795","news_1758","news_24114","news_8"],"tags":["news_32707","news_31573","news_27626","news_2141"],"featImg":"news_11981336","label":"source_news_11981294"},"news_11980592":{"type":"posts","id":"news_11980592","meta":{"index":"posts_1591205157","site":"news","id":"11980592","score":null,"sort":[1711285220000]},"guestAuthors":[],"slug":"recently-sold-a-home-you-might-get-part-of-your-realtor-fee-back","title":"National Realtors Settlement: What it Means for Buying and Selling a Home","publishDate":1711285220,"format":"standard","headTitle":"National Realtors Settlement: What it Means for Buying and Selling a Home | KQED","labelTerm":{"term":253,"site":"news"},"content":"\u003cp>Big changes are coming to the way people buy and sell houses in the United States. The National Association of Realtors settled a lawsuit last week that could up-end the way real estate agents are paid, doing away with the traditional agent’s commission of 5–6%. That’s prompting a reckoning for buyers, sellers and real estate agents. Here are six things to know.\u003c/p>\n\u003ch2>What if you already sold a house?\u003c/h2>\n\u003cp>As part of the settlement, the National Association of Realtors agreed to pay $418 million over the next four years. That’s in addition to $210 million that various brokerage firms had already agreed to pay. Lawyers will get a chunk of that money, but the rest will go to people who sold their homes in recent years and paid what critics argue were inflated real estate commissions. Eligibility depends on where you live, but in some parts of the country, the settlement covers people who sold homes as much as a decade ago.\u003c/p>\n\u003cp>“We don’t know the exact number, but we estimate it to be in the neighborhood of 40 or 50 million” people, says Benjamin Brown, co-chair of the anti-trust practice at Cohen Milstein, one of the law firms involved in the class-action case.\u003c/p>\n\u003cp>To find out if they’re entitled to compensation, sellers can check the lawyers’ website: \u003ca href=\"https://www.realestatecommissionlitigation.com/\">www.realestatecommissionlitigation.com\u003c/a>.\u003c/p>\n\u003ch2>How will this change real estate commissions?\u003c/h2>\n\u003cp>For decades, the norm in this country has been for the person selling a home to pay both her own agent and the buyer’s agent. What’s more, the buyer’s share of that commission had to be spelled out in order to advertise the home on the big regional listing sites. Realtors insist they never fixed those commissions, but as a practical matter, the public notice worked to set a standard — often in the neighborhood of 5 or 6%, split between the seller’s agent and the buyer’s agent.\u003c/p>\n\u003cp>[aside postID=news_11980019 hero='https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/GettyImages-1468009097-1020x680.jpg']For a home priced at $400,000 — which is close to the national average — that works out to $20,000 to $24,000 in commissions — much higher than people in other countries typically pay. In Germany, commissions average 4.5%. In the U.K., they’re under 2%.\u003c/p>\n\u003cp>Starting in July, sellers will no longer have to spell out a commission for the buyer’s agent. Advocates say that should lead to more negotiation, more competition and ultimately lower costs.\u003c/p>\n\u003ch2>What increased negotiations mean for buyers and sellers?\u003c/h2>\n\u003cp>There’s going to be more opportunity to shop around, and likely a wider array of services, from deluxe agents who charge a premium price to discount agents with more limited services — similar to what exists in other markets like stock brokers and travel agents.\u003c/p>\n\u003cp>Sellers may be able to negotiate a flat fee to market their house, not connected to the selling price. Buyers may be able to purchase a la carte services — paying less if they do their own house-hunting on the Internet and more if they want to be chauffeured around to open houses.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Many sellers may decide not to pay the buyer’s agent, leaving buyers to shoulder that cost on their own, or go without an agent altogether.\u003c/p>\n\u003cp>Overall expenses are expected to be significantly lower, however. Economists at the \u003ca href=\"https://www.richmondfed.org/publications/research/economic_brief/2024/eb_24-08\">Federal Reserve Bank of Richmond\u003c/a> estimate the changes could save homebuyers $30 billion a year, with most of those savings coming out of the pockets of real estate agents.\u003c/p>\n\u003ch2>What does this mean for agents?\u003c/h2>\n\u003cp>Agents are still sorting out what this might mean for their business. When fees are more negotiable, agents will have to make the case for what they’re worth. But the best agents feel like they do that already.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"Kevin Wilson, president, Greater Nashville Realtors\"]‘Do I think that Realtors have to learn to do business in a different way? Absolutely. But I also think this is a wrinkle in the landscape. Not a landmine.’[/pullquote]“Do I think that Realtors have to learn to do business in a different way? Absolutely,” says Kevin Wilson, president of the Greater Nashville Realtors. “But I also think this is a wrinkle in the landscape. Not a landmine.”\u003c/p>\n\u003cp>A drop in commissions might drive some agents into other lines of work, but that’s not necessarily a bad thing. The U.S. has 2.5 to 3 million real estate agents — which is far more than any other country, relative to the size of its housing market. For example, the U.S. has about six times more home sales each year than the U.K. does, but 26 times more agents.\u003c/p>\n\u003cp>“Do we see agents that work with buyers start to phase out of the business because they’re just not getting as many clients?” asks Jovani Ortiz, an agent on Long Island. “These are sort of the unknowns that most agents are looking at right now.”\u003c/p>\n\u003cp>While the commission pie is likely to shrink, it may be cut into fewer slices, so the remaining agents might end up making the same amount of money.\u003c/p>\n\u003ch2>With home prices and mortgage rates already high, how will homebuyers pay for their own agents?\u003c/h2>\n\u003cp>While sellers have traditionally paid buyers’ agents in the U.S. (and built that expense into the sales price of their home), many sellers may opt not to pay buyers’ agents in the future. In that case, buyers will have to pay their own agent out of pocket, on top of a down payment and other closing costs. Finding thousands of dollars to pay an agent could be a challenge, especially for first-time buyers, who typically have limited funds and also the greatest need for an agent’s guidance. First-time buyers accounted for just 26% of existing home sales in February — tying a record low.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"Vanessa Perry, professor, George Washington University School of Business\"]‘Many first time buyers are already at the absolute max of what they’re able to borrow. They’re not going to be able to come up with any additional cash to pay their own agent’[/pullquote]“Many first time buyers are already at the absolute max of what they’re able to borrow,” says Vanessa Perry, a professor at George Washington University School of Business and a fellow at the Urban Institute’s Housing Policy Finance Center. “They’re not going to be able to come up with any additional cash to pay their own agent.”\u003c/p>\n\u003cdiv>\n\u003cp>Home sellers could still agree through negotiation to pay the buyer’s agent. But in a hot housing market, sellers may have little incentive to do so. Eventually, buyers may be able to fold the cost of their agent’s commission into their mortgage, stretching the payments out over the life of the loan. But that will require a change in mortgage underwriting rules. Over time, lower real estate commissions should lead to somewhat lower housing prices.\u003c/p>\n\u003ch2>What should people who are thinking of buying or selling in the next six months do?\u003c/h2>\n\u003cp>The settlement’s changes in commission rules take effect in July, just as many people will be shopping for homes ahead of a new school year. But it’s not clear how quickly the landscape will change. Buyers and sellers may want to talk with their agent about the costs and benefits of moving before the deadline or waiting until the new rules are in place. Remember, commissions account for $20,000 to $24,000 on a typical home. Still, that’s just one factor to consider when deciding when to buy or sell — along with interest rates, the supply of homes on the market and life circumstances like a new job or family member.\u003c/p>\n\u003c/div>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":null,"status":"publish","parent":0,"modified":1712856958,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":22,"wordCount":1385},"headData":{"title":"National Realtors Settlement: What it Means for Buying and Selling a Home | KQED","description":"Big changes are coming to the way people buy and sell houses in the United States. The National Association of Realtors settled a lawsuit last week that could up-end the way real estate agents are paid, doing away with the traditional agent's commission of 5–6%. That's prompting a reckoning for buyers, sellers and real estate agents. Here are six things to know. What if you already sold a house? As part of the settlement, the National Association of Realtors agreed to pay $418 million over the next four years. That's in addition to $210 million that various brokerage firms had","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"sticky":false,"nprByline":"\u003ca href=\"https://www.npr.org/people/2788801/scott-horsley\">Scott Horsley\u003c/a>","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/11980592/recently-sold-a-home-you-might-get-part-of-your-realtor-fee-back","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Big changes are coming to the way people buy and sell houses in the United States. The National Association of Realtors settled a lawsuit last week that could up-end the way real estate agents are paid, doing away with the traditional agent’s commission of 5–6%. That’s prompting a reckoning for buyers, sellers and real estate agents. Here are six things to know.\u003c/p>\n\u003ch2>What if you already sold a house?\u003c/h2>\n\u003cp>As part of the settlement, the National Association of Realtors agreed to pay $418 million over the next four years. That’s in addition to $210 million that various brokerage firms had already agreed to pay. Lawyers will get a chunk of that money, but the rest will go to people who sold their homes in recent years and paid what critics argue were inflated real estate commissions. Eligibility depends on where you live, but in some parts of the country, the settlement covers people who sold homes as much as a decade ago.\u003c/p>\n\u003cp>“We don’t know the exact number, but we estimate it to be in the neighborhood of 40 or 50 million” people, says Benjamin Brown, co-chair of the anti-trust practice at Cohen Milstein, one of the law firms involved in the class-action case.\u003c/p>\n\u003cp>To find out if they’re entitled to compensation, sellers can check the lawyers’ website: \u003ca href=\"https://www.realestatecommissionlitigation.com/\">www.realestatecommissionlitigation.com\u003c/a>.\u003c/p>\n\u003ch2>How will this change real estate commissions?\u003c/h2>\n\u003cp>For decades, the norm in this country has been for the person selling a home to pay both her own agent and the buyer’s agent. What’s more, the buyer’s share of that commission had to be spelled out in order to advertise the home on the big regional listing sites. Realtors insist they never fixed those commissions, but as a practical matter, the public notice worked to set a standard — often in the neighborhood of 5 or 6%, split between the seller’s agent and the buyer’s agent.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"postid":"news_11980019","hero":"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/GettyImages-1468009097-1020x680.jpg","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>For a home priced at $400,000 — which is close to the national average — that works out to $20,000 to $24,000 in commissions — much higher than people in other countries typically pay. In Germany, commissions average 4.5%. In the U.K., they’re under 2%.\u003c/p>\n\u003cp>Starting in July, sellers will no longer have to spell out a commission for the buyer’s agent. Advocates say that should lead to more negotiation, more competition and ultimately lower costs.\u003c/p>\n\u003ch2>What increased negotiations mean for buyers and sellers?\u003c/h2>\n\u003cp>There’s going to be more opportunity to shop around, and likely a wider array of services, from deluxe agents who charge a premium price to discount agents with more limited services — similar to what exists in other markets like stock brokers and travel agents.\u003c/p>\n\u003cp>Sellers may be able to negotiate a flat fee to market their house, not connected to the selling price. Buyers may be able to purchase a la carte services — paying less if they do their own house-hunting on the Internet and more if they want to be chauffeured around to open houses.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Many sellers may decide not to pay the buyer’s agent, leaving buyers to shoulder that cost on their own, or go without an agent altogether.\u003c/p>\n\u003cp>Overall expenses are expected to be significantly lower, however. Economists at the \u003ca href=\"https://www.richmondfed.org/publications/research/economic_brief/2024/eb_24-08\">Federal Reserve Bank of Richmond\u003c/a> estimate the changes could save homebuyers $30 billion a year, with most of those savings coming out of the pockets of real estate agents.\u003c/p>\n\u003ch2>What does this mean for agents?\u003c/h2>\n\u003cp>Agents are still sorting out what this might mean for their business. When fees are more negotiable, agents will have to make the case for what they’re worth. But the best agents feel like they do that already.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘Do I think that Realtors have to learn to do business in a different way? Absolutely. But I also think this is a wrinkle in the landscape. Not a landmine.’","name":"pullquote","attributes":{"named":{"align":"right","size":"medium","citation":"Kevin Wilson, president, Greater Nashville Realtors","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>“Do I think that Realtors have to learn to do business in a different way? Absolutely,” says Kevin Wilson, president of the Greater Nashville Realtors. “But I also think this is a wrinkle in the landscape. Not a landmine.”\u003c/p>\n\u003cp>A drop in commissions might drive some agents into other lines of work, but that’s not necessarily a bad thing. The U.S. has 2.5 to 3 million real estate agents — which is far more than any other country, relative to the size of its housing market. For example, the U.S. has about six times more home sales each year than the U.K. does, but 26 times more agents.\u003c/p>\n\u003cp>“Do we see agents that work with buyers start to phase out of the business because they’re just not getting as many clients?” asks Jovani Ortiz, an agent on Long Island. “These are sort of the unknowns that most agents are looking at right now.”\u003c/p>\n\u003cp>While the commission pie is likely to shrink, it may be cut into fewer slices, so the remaining agents might end up making the same amount of money.\u003c/p>\n\u003ch2>With home prices and mortgage rates already high, how will homebuyers pay for their own agents?\u003c/h2>\n\u003cp>While sellers have traditionally paid buyers’ agents in the U.S. (and built that expense into the sales price of their home), many sellers may opt not to pay buyers’ agents in the future. In that case, buyers will have to pay their own agent out of pocket, on top of a down payment and other closing costs. Finding thousands of dollars to pay an agent could be a challenge, especially for first-time buyers, who typically have limited funds and also the greatest need for an agent’s guidance. First-time buyers accounted for just 26% of existing home sales in February — tying a record low.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘Many first time buyers are already at the absolute max of what they’re able to borrow. They’re not going to be able to come up with any additional cash to pay their own agent’","name":"pullquote","attributes":{"named":{"align":"right","size":"medium","citation":"Vanessa Perry, professor, George Washington University School of Business","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>“Many first time buyers are already at the absolute max of what they’re able to borrow,” says Vanessa Perry, a professor at George Washington University School of Business and a fellow at the Urban Institute’s Housing Policy Finance Center. “They’re not going to be able to come up with any additional cash to pay their own agent.”\u003c/p>\n\u003cdiv>\n\u003cp>Home sellers could still agree through negotiation to pay the buyer’s agent. But in a hot housing market, sellers may have little incentive to do so. Eventually, buyers may be able to fold the cost of their agent’s commission into their mortgage, stretching the payments out over the life of the loan. But that will require a change in mortgage underwriting rules. Over time, lower real estate commissions should lead to somewhat lower housing prices.\u003c/p>\n\u003ch2>What should people who are thinking of buying or selling in the next six months do?\u003c/h2>\n\u003cp>The settlement’s changes in commission rules take effect in July, just as many people will be shopping for homes ahead of a new school year. But it’s not clear how quickly the landscape will change. Buyers and sellers may want to talk with their agent about the costs and benefits of moving before the deadline or waiting until the new rules are in place. Remember, commissions account for $20,000 to $24,000 on a typical home. Still, that’s just one factor to consider when deciding when to buy or sell — along with interest rates, the supply of homes on the market and life circumstances like a new job or family member.\u003c/p>\n\u003c/div>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11980592/recently-sold-a-home-you-might-get-part-of-your-realtor-fee-back","authors":["byline_news_11980592"],"categories":["news_1758","news_6266","news_8"],"tags":["news_28791","news_1775","news_137","news_33923"],"affiliates":["news_253"],"featImg":"news_11980601","label":"news_253"},"news_11979609":{"type":"posts","id":"news_11979609","meta":{"index":"posts_1591205157","site":"news","id":"11979609","score":null,"sort":[1710770449000]},"guestAuthors":[],"slug":"game-developers-gather-in-sf-as-industry-reels-from-mass-layoffs","title":"Game Developers Gather in SF as Industry Reels From Mass Layoffs","publishDate":1710770449,"format":"standard","headTitle":"Game Developers Gather in SF as Industry Reels From Mass Layoffs | KQED","labelTerm":{"site":"news"},"content":"\u003cp>In a good year for the game industry, the annual Game Developers Conference in San Francisco feels like “going to Disneyland,” said Russ Fan, a San Mateo game designer.\u003c/p>\n\u003cp>This is not one of those years. The conference, which gets underway Monday and is expected to draw tens of thousands of attendees, is taking place amid mass layoffs. And Fan is among the thousands of workers who have lost their jobs.\u003c/p>\n\u003cp>His prediction for this year’s conference? “Probably more serious and dour,” he said.\u003c/p>\n\u003cp>Roughly 8,000 workers have been laid off from the game industry since the start of 2024, \u003ca href=\"https://publish.obsidian.md/vg-layoffs/Archive/2024\">according\u003c/a> to a layoff tracker created by technical artist Farhan Noor. If the cuts continue, this year could surpass 2023, when about 10,500 people lost their jobs, according to the tracker.\u003c/p>\n\u003cp>Experts say no single cause drives the layoffs, and the numbers reflect the industry’s cyclical nature.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Fan was laid off from his game design job at Illumix, an augmented reality company, last March. This is not the first time he has been laid off in the two decades he has worked in the game industry. He recounted how, in one instance, he was laid off and then quickly brought back because the company had cut too many people and needed to finish a project.\u003c/p>\n\u003cp>“You become numb [to the layoffs],” he said. “Because if you don’t, they crush you.”\u003c/p>\n\u003cp>Though this year is shaping up to be difficult, experts project the industry will eventually rebound. But in the meantime, workers say the layoffs have cost them their livelihoods, produced a brutally competitive job market and could hurt the quality of the games themselves.\u003c/p>\n\u003cp>“It’s a staggeringly large number to comprehend,” said Alissa McAloon, the publisher and editorial director of \u003ca href=\"https://www.gamedeveloper.com/\">Game Developer\u003c/a>, a publication that covers the industry.[pullquote size='medium' align='right' citation=\"Russ Fan, San Mateo game designer\"]‘You become numb [to the layoffs]. Because if you don’t, they crush you.’[/pullquote]The layoffs especially \u003ca href=\"https://www.theesa.com/wp-content/uploads/2024/02/EIR_ESA_2024.pdf\">impact\u003c/a> California, where some 44,000 jobs are located, constituting about 40% of the game industry.\u003c/p>\n\u003cp>This is reflected in layoff notices, collected daily by \u003ca href=\"https://biglocalnews.org/content/tools/layoff-watch.html\">Big Local News’ Layoff-Watch\u003c/a>. According to the notices, Sega of America laid off 61 workers in early March, and Activision Blizzard and Riot Games will lay off 899 and 336 people, respectively, later this month.\u003c/p>\n\u003cp>The causes of the layoffs vary by company. The cuts at Activision Blizzard, for example, came after Microsoft acquired the company in October and then proceeded to \u003ca href=\"https://www.theverge.com/2024/1/25/24049050/microsoft-activision-blizzard-layoffs\">slash\u003c/a> 1,900 jobs across its gaming workforce.\u003c/p>\n\u003cp>Still, Dmitri Williams, a professor at USC Annenberg who studies the video game industry, said there are three factors that help explain the layoffs: A generation of video game consoles is nearing its end, driving down new machine sales. Some companies have struggled to keep up with the move toward “live service games,” where publishers continue to add new content after a game’s release. Meanwhile, the industry overall is shedding some of the jobs it added in response to a surge in demand during the pandemic.\u003c/p>\n\u003cp>“The industry isn’t collapsing,” Williams said. “This is more like the pendulum swing you would expect as the industry goes through its cycles, and it will probably swing up again in the coming years.\u003c/p>\n\u003cp>“But all this is cold comfort if you’re one of the people laid off,” he added.\u003c/p>\n\u003cp>Neha Nair, a former senior community and social media manager at Crystal Dynamics, was laid off in September. She has needed to cut costs to afford to live in San Jose with her partner, and the job search has been disheartening.\u003c/p>\n\u003cp>“Every role I’m applying for has at least a thousand applicants,” she said. “I want us all to land on our feet, and I hate that I’m competing against people that I’m rooting for.”\u003c/p>\n\u003cp>Nair is attending the Game Developers Conference and said she looks forward to connecting and finding support with others who have been laid off.[pullquote size='medium' align='right' citation=\"Professor Dmitri Williams, USC Annenberg\"]‘The industry isn’t collapsing. This is more like the pendulum swing you would expect as the industry goes through its cycles, and it will probably swing up again in the coming years.’[/pullquote]The conference will feature skill-building sessions and networking opportunities, which Conference Manager Ashley Corrigan said could be especially helpful for those affected by layoffs. The schedule \u003ca href=\"https://schedule.gdconf.com/\">includes\u003c/a> sessions on working as a freelancer for the first time and weathering layoffs as a nonbinary individual, woman or transman.\u003c/p>\n\u003cp>Corrigan said people have gotten jobs and met future collaborators at previous conferences.\u003c/p>\n\u003cp>“This is the time, more than ever, that people should really lean into community,” she said.\u003c/p>\n\u003cp>Fan, the game designer, will be hosting a \u003ca href=\"https://schedule.gdconf.com/speaker/fan-russ/72023\">roundtable\u003c/a> on layoff preparedness. He, too, encouraged people experiencing a layoff to stay connected with their personal and professional support networks.\u003c/p>\n\u003cp>“Leverage them as much as possible while you need to, and support them as much as you can while you’re able,” he said.\u003c/p>\n\u003cp>He predicted that the layoffs would have consequences that extend beyond the industry. He said it is easy to underestimate the power of games to create “moments of play and happiness,” and the loss of talent from the industry will hurt the games that come out down the road.\u003c/p>\n\u003cp>“When the resurgence [of the industry] happens, it will be great,” he said. “But there will be a drought of play, inspiration and innovation for at least a couple of years.”\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003ci>This article was reported in partnership with \u003c/i>\u003ca href=\"https://biglocalnews.org/\">\u003ci>Big Local News\u003c/i>\u003c/a>\u003ci> at Stanford University.\u003c/i>\u003c/p>\n\n","blocks":[],"excerpt":"Roughly 8,000 workers have been laid off from the game industry since the start of 2024. If the cuts continue, this year could surpass 2023, when about 10,500 people lost their jobs.","status":"publish","parent":0,"modified":1710786703,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":26,"wordCount":990},"headData":{"title":"Game Developers Gather in SF as Industry Reels From Mass Layoffs | KQED","description":"Roughly 8,000 workers have been laid off from the game industry since the start of 2024. If the cuts continue, this year could surpass 2023, when about 10,500 people lost their jobs.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"sticky":false,"nprByline":"\u003ca href=\"https://twitter.com/kate_selig\">Kate Selig\u003c/a>","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/11979609/game-developers-gather-in-sf-as-industry-reels-from-mass-layoffs","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>In a good year for the game industry, the annual Game Developers Conference in San Francisco feels like “going to Disneyland,” said Russ Fan, a San Mateo game designer.\u003c/p>\n\u003cp>This is not one of those years. The conference, which gets underway Monday and is expected to draw tens of thousands of attendees, is taking place amid mass layoffs. And Fan is among the thousands of workers who have lost their jobs.\u003c/p>\n\u003cp>His prediction for this year’s conference? “Probably more serious and dour,” he said.\u003c/p>\n\u003cp>Roughly 8,000 workers have been laid off from the game industry since the start of 2024, \u003ca href=\"https://publish.obsidian.md/vg-layoffs/Archive/2024\">according\u003c/a> to a layoff tracker created by technical artist Farhan Noor. If the cuts continue, this year could surpass 2023, when about 10,500 people lost their jobs, according to the tracker.\u003c/p>\n\u003cp>Experts say no single cause drives the layoffs, and the numbers reflect the industry’s cyclical nature.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Fan was laid off from his game design job at Illumix, an augmented reality company, last March. This is not the first time he has been laid off in the two decades he has worked in the game industry. He recounted how, in one instance, he was laid off and then quickly brought back because the company had cut too many people and needed to finish a project.\u003c/p>\n\u003cp>“You become numb [to the layoffs],” he said. “Because if you don’t, they crush you.”\u003c/p>\n\u003cp>Though this year is shaping up to be difficult, experts project the industry will eventually rebound. But in the meantime, workers say the layoffs have cost them their livelihoods, produced a brutally competitive job market and could hurt the quality of the games themselves.\u003c/p>\n\u003cp>“It’s a staggeringly large number to comprehend,” said Alissa McAloon, the publisher and editorial director of \u003ca href=\"https://www.gamedeveloper.com/\">Game Developer\u003c/a>, a publication that covers the industry.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘You become numb [to the layoffs]. Because if you don’t, they crush you.’","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Russ Fan, San Mateo game designer","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>The layoffs especially \u003ca href=\"https://www.theesa.com/wp-content/uploads/2024/02/EIR_ESA_2024.pdf\">impact\u003c/a> California, where some 44,000 jobs are located, constituting about 40% of the game industry.\u003c/p>\n\u003cp>This is reflected in layoff notices, collected daily by \u003ca href=\"https://biglocalnews.org/content/tools/layoff-watch.html\">Big Local News’ Layoff-Watch\u003c/a>. According to the notices, Sega of America laid off 61 workers in early March, and Activision Blizzard and Riot Games will lay off 899 and 336 people, respectively, later this month.\u003c/p>\n\u003cp>The causes of the layoffs vary by company. The cuts at Activision Blizzard, for example, came after Microsoft acquired the company in October and then proceeded to \u003ca href=\"https://www.theverge.com/2024/1/25/24049050/microsoft-activision-blizzard-layoffs\">slash\u003c/a> 1,900 jobs across its gaming workforce.\u003c/p>\n\u003cp>Still, Dmitri Williams, a professor at USC Annenberg who studies the video game industry, said there are three factors that help explain the layoffs: A generation of video game consoles is nearing its end, driving down new machine sales. Some companies have struggled to keep up with the move toward “live service games,” where publishers continue to add new content after a game’s release. Meanwhile, the industry overall is shedding some of the jobs it added in response to a surge in demand during the pandemic.\u003c/p>\n\u003cp>“The industry isn’t collapsing,” Williams said. “This is more like the pendulum swing you would expect as the industry goes through its cycles, and it will probably swing up again in the coming years.\u003c/p>\n\u003cp>“But all this is cold comfort if you’re one of the people laid off,” he added.\u003c/p>\n\u003cp>Neha Nair, a former senior community and social media manager at Crystal Dynamics, was laid off in September. She has needed to cut costs to afford to live in San Jose with her partner, and the job search has been disheartening.\u003c/p>\n\u003cp>“Every role I’m applying for has at least a thousand applicants,” she said. “I want us all to land on our feet, and I hate that I’m competing against people that I’m rooting for.”\u003c/p>\n\u003cp>Nair is attending the Game Developers Conference and said she looks forward to connecting and finding support with others who have been laid off.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘The industry isn’t collapsing. This is more like the pendulum swing you would expect as the industry goes through its cycles, and it will probably swing up again in the coming years.’","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Professor Dmitri Williams, USC Annenberg","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>The conference will feature skill-building sessions and networking opportunities, which Conference Manager Ashley Corrigan said could be especially helpful for those affected by layoffs. The schedule \u003ca href=\"https://schedule.gdconf.com/\">includes\u003c/a> sessions on working as a freelancer for the first time and weathering layoffs as a nonbinary individual, woman or transman.\u003c/p>\n\u003cp>Corrigan said people have gotten jobs and met future collaborators at previous conferences.\u003c/p>\n\u003cp>“This is the time, more than ever, that people should really lean into community,” she said.\u003c/p>\n\u003cp>Fan, the game designer, will be hosting a \u003ca href=\"https://schedule.gdconf.com/speaker/fan-russ/72023\">roundtable\u003c/a> on layoff preparedness. He, too, encouraged people experiencing a layoff to stay connected with their personal and professional support networks.\u003c/p>\n\u003cp>“Leverage them as much as possible while you need to, and support them as much as you can while you’re able,” he said.\u003c/p>\n\u003cp>He predicted that the layoffs would have consequences that extend beyond the industry. He said it is easy to underestimate the power of games to create “moments of play and happiness,” and the loss of talent from the industry will hurt the games that come out down the road.\u003c/p>\n\u003cp>“When the resurgence [of the industry] happens, it will be great,” he said. “But there will be a drought of play, inspiration and innovation for at least a couple of years.”\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>\u003ci>This article was reported in partnership with \u003c/i>\u003ca href=\"https://biglocalnews.org/\">\u003ci>Big Local News\u003c/i>\u003c/a>\u003ci> at Stanford University.\u003c/i>\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11979609/game-developers-gather-in-sf-as-industry-reels-from-mass-layoffs","authors":["byline_news_11979609"],"categories":["news_1758","news_8"],"tags":["news_33910","news_20002","news_352"],"featImg":"news_11979438","label":"news"},"news_11978954":{"type":"posts","id":"news_11978954","meta":{"index":"posts_1591205157","site":"news","id":"11978954","score":null,"sort":[1710262834000]},"guestAuthors":[],"slug":"retailers-howled-about-theft-last-year-why-not-now","title":"Retailers Howled About Theft Last Year. Why Not Now?","publishDate":1710262834,"format":"standard","headTitle":"Retailers Howled About Theft Last Year. Why Not Now? | KQED","labelTerm":{},"content":"\u003cp>For much of the past year or so, executives at big retailers did something unusual: They talked about theft in their stores. A lot.\u003c/p>\n\u003cp>Walmart’s CEO warned it could \u003ca href=\"https://www.cnbc.com/2022/12/06/walmart-ceo-says-shoplifting-could-lead-to-price-jumps-store-closures.html\">lead to store closures\u003c/a> and higher prices. Target’s CEO said it was costing the chain \u003ca href=\"https://corporate.target.com/getmedia/a32499c2-0f20-4d33-9d6b-2265cf7fd95d/2023-05-17-Q1-Transcript-TGT.pdf\">upward of a billion dollars\u003c/a>. Home Depot’s finance chief called it a “\u003ca href=\"https://www.fool.com/earnings/call-transcripts/2023/08/15/home-depot-hd-q2-2023-earnings-call-transcript/\">consistent pressure\u003c/a>” that the chain is “tackling every day.”\u003c/p>\n\u003cp>With a \u003ca href=\"https://www.npr.org/2023/10/09/1203697964/flash-mob-retail-thefts\">backdrop of viral videos\u003c/a> showing brazen and \u003ca href=\"https://abcnews.go.com/US/home-depot-employee-fatally-shot-confronting-alleged-shoplifter/story?id=98703891\">violent \u003c/a>thieves, crime became a common theme on retailers’ typically dry quarterly earnings calls. Executives often mentioned “shrink” — inventory missing for one reason or another — as a factor behind declining profits. The list grew long: Macy’s, Best Buy, Dick’s Sporting Goods, T.J.Maxx, Dollar General.\u003c/p>\n\u003cp>Fast-forward to this year, and the fever pitch seems to be fading.\u003c/p>\n\u003cp>So far this earnings season: Walgreens said the problem remains — and is really bad in some places. But Foot Locker described changes in shrink as “\u003ca href=\"https://seekingalpha.com/article/4676380-foot-locker-inc-fl-q4-2023-earnings-call-transcript\">relatively neutral\u003c/a>.” T.J. Maxx’s parent company found it \u003ca href=\"https://seekingalpha.com/article/4674396-tjx-companies-inc-tjx-q4-2024-earnings-call-transcript\">better than expected\u003c/a>. Target cited “\u003ca href=\"https://www.fool.com/earnings/call-transcripts/2024/03/05/target-tgt-q4-2023-earnings-call-transcript/\">really solid progress\u003c/a>.” Many didn’t mention shrink at all. Two retailers hurt by theft in the past — Ulta and Dick’s Sporting Goods — will address investors on Thursday.\u003c/p>\n\u003cp>What has changed?\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Retailers cite a few things: Federal and state lawmakers have \u003ca href=\"https://www.sacbee.com/news/politics-government/capitol-alert/article286391150.html\">drafted new crime bills\u003c/a>, and \u003ca href=\"https://apnews.com/article/retail-theft-virginia-law-repeal-d0bd556e030996ada00fcb1bbe40145c\">some have become law\u003c/a>. Many stores have scaled back self-checkout options and locked away more products behind glass doors; their security investments are starting to bear fruit.\u003c/p>\n\u003cp>But one thing remains the same: Crime data has yet to indicate a nationwide epidemic of theft, leaving us only to guess at the true scale of the problem — then and now.\u003c/p>\n\u003ch3>How big of a problem is retail theft?\u003c/h3>\n\u003cp>Most retailers say their top worry is “organized retail crime” — coordinated operations in which people tend to steal and offload in bulk, often through online stores. Security experts argue that criminal rings proliferated as the COVID-19 pandemic ebbed, in part thanks to understaffed stores and soaring online demand.\u003c/p>\n\u003cp>However, companies do not share data on goods stolen, let alone stolen in a specific manner. And individual stores often \u003ca href=\"https://www.npr.org/2023/11/29/1215568143/its-peak-shopping-and-shoplifting-season-cops-are-stepping-up-antitheft-tactics\">don’t report incidents to the police\u003c/a>.[aside label=\"More on the tampon tax\" tag=\"retail-theft\"]Instead, the most commonly cited figure comes from an annual National Retail Federation survey that asks retailers to assess “shrink,” a much broader measure. Overall, \u003ca href=\"https://nrf.com/research/national-retail-security-survey-2023\">the latest survey\u003c/a> attributes about 36% of shrink to shoplifting and organized theft, 29% to theft by employees and 27% to mistakes in tracking, accounting or other errors.\u003c/p>\n\u003cp>The survey makes eye-popping estimates: Retailers lost $112 billion to shrink in 2022, the most recent figure. Using the given breakdown, this could mean stores lost over $40 billion that year to outside theft.\u003c/p>\n\u003cp>But the picture is not that clear. For one thing, the dollar value of shrink is calculated based on a percentage of retailers’ sales, and in 2022, shoppers went on a \u003ca href=\"https://www.npr.org/2022/11/25/1139231005/black-friday-shoppers-are-expected-to-spend-more-money-due-to-inflation\">record buying spree\u003c/a>.\u003c/p>\n\u003cp>The survey shows the scale of shrink has barely changed in the past decade. In 2022, retailers, on average, said shrink affected 1.6% of sales — the same as in 2020 and 2019. In other years, the average hovered around 1.4%, which\u003ca href=\"https://wwd.com/feature/nrf-inventory-retailers-2014-survey-10165709/\"> at one point was reported\u003c/a> as the lowest rate in two decades.\u003c/p>\n\u003cp>When the next survey is released in the coming months, it may show shrink was a substantially bigger problem last year, at around 2% of sales, according to a report by the investment bank William Blair.\u003c/p>\n\u003cp>Still, the analysts surmised that retailers also likely used crime as a cover for closures of underperforming locations and lackluster financial results, making up for shoppers’ tightening budgets, for example, or a glut of unpopular products.\u003c/p>\n\u003cp>“While theft is likely elevated,” the report said, “companies are also likely using the opportunity to draw attention away from margin headwinds,” meaning other factors that eroded their profits, such as deeper discounts or poor management of inventory.\u003c/p>\n\u003ch3>What happened at Walgreens and Target\u003c/h3>\n\u003cp>Walgreens and Target illustrate how opaque and complicated the question of theft can be.\u003c/p>\n\u003cp>In late 2021, Walgreens shut down five stores in San Francisco, citing skyrocketing organized retail crime. One of the stores appeared in a \u003ca href=\"https://twitter.com/LyanneMelendez/status/1404574079156318210?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1404574079156318210%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fsfist.com%2F2021%2F06%2F21%2Fthief-filmed-shoplifting-at-san-francisco-walgreens-in-viral-video-arrested-after-attempting-to-steal-again%2F\">viral video\u003c/a> of a thief loading up a trash bag while being filmed by several people, including a security guard. Later, a \u003cem>San Francisco Chronicle\u003c/em> \u003ca href=\"https://www.sfchronicle.com/sf/article/Is-shoplifting-forcing-Walgreens-to-cut-back-in-16536960.php\">data analysis found\u003c/a> that one of the closing stores had reported only seven shoplifting incidents that year, fewer than in 2018.\u003c/p>\n\u003cp>Then, in January 2023, Walgreens’ finance chief shocked the industry by saying, “\u003ca href=\"https://www.fool.com/earnings/call-transcripts/2023/01/05/walgreens-boots-alliance-wba-q1-2023-earnings-call/\">Maybe we cried too much last year\u003c/a>” over thefts. He said shrink had declined. The chain would scale back anti-theft spending and rely more on law enforcement than “largely ineffective” security companies.[pullquote size='medium' align='right' citation=\"Tim Wentworth, CEO, Walgreens\"]‘Let me be clear. It is very real — it is an industry problem. The urban area, in particular in some cities, is challenged, some more than others. We believe that it’s something that is going to take some time.’[/pullquote]Now, the company’s leadership has changed. New finance chief Manmohan Mahajan \u003ca href=\"https://www.fool.com/earnings/call-transcripts/2024/01/16/walgreens-boots-alliance-wba-q1-2024-earnings-call/\">told investors in January\u003c/a> that shrink “continues to be a systemic issue” for retailers. Later, new CEO Tim Wentworth said he didn’t expect things to improve in 2024.\u003c/p>\n\u003cp>“Let me be clear. It is very real — it is an industry problem,” Wentworth said at an \u003ca href=\"https://seekingalpha.com/article/4661739-walgreens-boots-alliance-inc-wba-j-p-morgan-42nd-annual-healthcare-conference-transcript\">industry conference\u003c/a>. “The urban area, in particular in some cities, is challenged, some more than others. We believe that it’s something that is going to take some time.”\u003c/p>\n\u003cp>Target took center stage on retail crime after November 2022, when executives got specific: They said shrink could cost the chain $600 million over the year.\u003c/p>\n\u003cp>They kept focusing on it. In May 2023, they said shrink would reduce Target’s annual profits \u003ca href=\"https://corporate.target.com/getmedia/a32499c2-0f20-4d33-9d6b-2265cf7fd95d/2023-05-17-Q1-Transcript-TGT.pdf\">by over $500 million\u003c/a> from a year earlier. In August, CEO Brian Cornell \u003ca href=\"https://corporate.target.com/getmedia/d2af905f-82f7-4602-ba27-053e6cf50c1a/2023-08-16-Q2-Transcript-TGT.pdf\">said violent thefts\u003c/a> at stores increased 120% in the first five months of 2023, compared with the same period in 2022.\u003c/p>\n\u003cp>In September, Target \u003ca href=\"https://corporate.target.com/press/statement/2023/09/target-closes-select-stores-to-prioritize-team-member-and-guest-safety\">announced it was closing nine locations\u003c/a> in New York City, Seattle, the San Francisco Bay Area and Portland, Oregon, because of theft and organized retail crime. Later, \u003ca href=\"https://www.cnbc.com/2023/12/19/target-store-closures-theft-and-crime-higher-nearby.html\">data analysis by CNBC\u003c/a> showed that as Target closed those stores, it chose to keep operating nearby locations that had reported more crime incidents but that also served more and wealthier shoppers.\u003c/p>\n\u003cp>Target described numerous anti-theft investments, including locked merchandise, de-escalation training and more security staff. The chain was also delivering disappointing financial reports: Inflation had shoppers prioritizing necessities, and Target took a big hit. Sales \u003ca href=\"https://corporate.target.com/press/release/2023/02/target-corporation-reports-fourth-quarter-and-full\">barely grew in 2022\u003c/a> and \u003ca href=\"https://corporate.target.com/press/release/2024/03/target-corporation-reports-fourth-quarter-and-full-year-2023-earnings\">declined in 2023\u003c/a> for the first time in years.\u003c/p>\n\u003ch3>\u003cstrong>Safety measures turn off shoppers \u003c/strong>\u003c/h3>\n\u003cp>Of course, big-picture statistics can mask trouble in specific places.\u003c/p>\n\u003cp>Shoplifting, for example, rose between 2019 and 2023 in New York City, Los Angeles, Virginia Beach and Dallas, while declining in over a dozen other cities, according to a \u003ca href=\"https://counciloncj.org/shoplifting-trends-what-you-need-to-know/\">November report\u003c/a> by the Council on Criminal Justice, a nonpartisan think tank.\u003c/p>\n\u003cp>And shoppers often encounter a clear sign of stepped-up security: products like makeup, baby formula and laundry detergent locked behind plexiglass or even replaced with photographs. Katherine Black at the consulting firm Kearney said stores would not choose this if they didn’t have to.\u003c/p>\n\u003cp>“To combat this problem, inherently, they’re putting in place measures that detract sales,” Black explained.[pullquote size='medium' align='right' citation=\"Brian Cornell, CEO, Target\"]‘When I think about shrink, I’ll start with the word ‘progress. I think we’re seeing really solid progress and greater awareness at the national, state and local level.’[/pullquote]Almost a third of shoppers say locked-up products hurt their perception of a store, according to Kearney’s October survey of 500 adults in the U.S. and Canada. More than a quarter say this prompts them to abandon the purchase and 46% say they end up buying somewhere else.\u003c/p>\n\u003cp>No major retailer has disclosed sales lost over heightened security so far. During Target’s latest earnings call, one analyst asked executives about this, but they did not respond directly.\u003c/p>\n\u003cp>“When I think about shrink, I’ll start with the word ‘progress,'” Cornell said. “I think we’re seeing really solid progress and greater awareness at the national, state and local level.”\u003c/p>\n\u003cp>Retailers have long lobbied for \u003ca href=\"https://www.npr.org/2020/10/16/923844907/when-shoplifting-is-a-felony-retailers-back-harsher-penalties-for-store-theft\">tougher prosecution of shoplifters\u003c/a> and a crackdown on online platforms used by resellers, including Amazon and Facebook Marketplace.\u003c/p>\n\u003cp>Over the past year, \u003ca href=\"https://www.cnbc.com/2023/08/11/organized-retail-crime-nine-states-pass-laws-to-crack-down-on-theft.html\">several states\u003c/a> have gone after organized retail crime with new laws. Leaders in \u003ca href=\"https://laist.com/news/criminal-justice/la-county-is-getting-a-funding-boost-to-fight-smash-grab-theft\">California\u003c/a>, New York and other places have put funding priority on “smash-and-grab” crimes. Congress \u003ca href=\"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section45f&num=0&edition=prelim\">passed a law\u003c/a> requiring online marketplaces to verify the identities of high-volume sellers.\u003c/p>\n\u003cp>Retailers also claim their security investments are starting to show results.\u003c/p>\n\u003cp>This can include tracking alarms or moving high-risk products closer to registers. Many stores began restricting the use of self-checkout, including \u003ca href=\"https://www.usatoday.com/story/money/shopping/2024/03/06/walmart-self-checkout-update/72866539007/\">Walmart \u003c/a>and \u003ca href=\"https://www.cnn.com/2023/11/18/business/target-self-checkout-new-system/index.html\">Target\u003c/a>. More retailers weighed changing the layout of some stores to funnel all shoppers through a single entrance, a staple security protocol at Best Buy and Costco. Best Buy, at one point, said it added more workers to walk the floor, which experts say helps deter many criminals.\u003c/p>\n\u003cdiv class=\"fullattribution\">\u003cem>Copyright 2024 NPR. To see more, visit https://www.npr.org.\u003cimg decoding=\"async\" src=\"https://www.google-analytics.com/__utm.gif?utmac=UA-5828686-4&utmdt=Retailers+howled+about+theft+last+year.+Why+not+now%3F&utme=8(APIKey)9(MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004)\">\u003c/em>\u003c/div>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"Mentions of retail theft seem to be fading, their fever pitch cooling. What's changed? And how bad was the problem in the first place?","status":"publish","parent":0,"modified":1710286444,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":36,"wordCount":1647},"headData":{"title":"Retailers Howled About Theft Last Year. Why Not Now? | KQED","description":"Mentions of retail theft seem to be fading, their fever pitch cooling. What's changed? And how bad was the problem in the first place?","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"source":"NPR","sourceUrl":"https://www.npr.org/2024/03/11/1236075589/retail-theft-crime-target-stores","sticky":false,"nprImageCredit":"Bebeto Matthews","nprByline":"\u003ca href=\"https://www.npr.org/people/447244385/alina-selyukh\">Alina Selyukh\u003c/a>","nprImageAgency":"AP","nprStoryId":"1236075589","nprApiLink":"http://api.npr.org/query?id=1236075589&apiKey=MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004","nprHtmlLink":"https://www.npr.org/2024/03/11/1236075589/retail-theft-crime-target-stores?ft=nprml&f=1236075589","nprRetrievedStory":"1","nprPubDate":"Mon, 11 Mar 2024 12:13:00 -0400","nprStoryDate":"Mon, 11 Mar 2024 12:13:01 -0400","nprLastModifiedDate":"Mon, 11 Mar 2024 12:13:01 -0400","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/11978954/retailers-howled-about-theft-last-year-why-not-now","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>For much of the past year or so, executives at big retailers did something unusual: They talked about theft in their stores. A lot.\u003c/p>\n\u003cp>Walmart’s CEO warned it could \u003ca href=\"https://www.cnbc.com/2022/12/06/walmart-ceo-says-shoplifting-could-lead-to-price-jumps-store-closures.html\">lead to store closures\u003c/a> and higher prices. Target’s CEO said it was costing the chain \u003ca href=\"https://corporate.target.com/getmedia/a32499c2-0f20-4d33-9d6b-2265cf7fd95d/2023-05-17-Q1-Transcript-TGT.pdf\">upward of a billion dollars\u003c/a>. Home Depot’s finance chief called it a “\u003ca href=\"https://www.fool.com/earnings/call-transcripts/2023/08/15/home-depot-hd-q2-2023-earnings-call-transcript/\">consistent pressure\u003c/a>” that the chain is “tackling every day.”\u003c/p>\n\u003cp>With a \u003ca href=\"https://www.npr.org/2023/10/09/1203697964/flash-mob-retail-thefts\">backdrop of viral videos\u003c/a> showing brazen and \u003ca href=\"https://abcnews.go.com/US/home-depot-employee-fatally-shot-confronting-alleged-shoplifter/story?id=98703891\">violent \u003c/a>thieves, crime became a common theme on retailers’ typically dry quarterly earnings calls. Executives often mentioned “shrink” — inventory missing for one reason or another — as a factor behind declining profits. The list grew long: Macy’s, Best Buy, Dick’s Sporting Goods, T.J.Maxx, Dollar General.\u003c/p>\n\u003cp>Fast-forward to this year, and the fever pitch seems to be fading.\u003c/p>\n\u003cp>So far this earnings season: Walgreens said the problem remains — and is really bad in some places. But Foot Locker described changes in shrink as “\u003ca href=\"https://seekingalpha.com/article/4676380-foot-locker-inc-fl-q4-2023-earnings-call-transcript\">relatively neutral\u003c/a>.” T.J. Maxx’s parent company found it \u003ca href=\"https://seekingalpha.com/article/4674396-tjx-companies-inc-tjx-q4-2024-earnings-call-transcript\">better than expected\u003c/a>. Target cited “\u003ca href=\"https://www.fool.com/earnings/call-transcripts/2024/03/05/target-tgt-q4-2023-earnings-call-transcript/\">really solid progress\u003c/a>.” Many didn’t mention shrink at all. Two retailers hurt by theft in the past — Ulta and Dick’s Sporting Goods — will address investors on Thursday.\u003c/p>\n\u003cp>What has changed?\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Retailers cite a few things: Federal and state lawmakers have \u003ca href=\"https://www.sacbee.com/news/politics-government/capitol-alert/article286391150.html\">drafted new crime bills\u003c/a>, and \u003ca href=\"https://apnews.com/article/retail-theft-virginia-law-repeal-d0bd556e030996ada00fcb1bbe40145c\">some have become law\u003c/a>. Many stores have scaled back self-checkout options and locked away more products behind glass doors; their security investments are starting to bear fruit.\u003c/p>\n\u003cp>But one thing remains the same: Crime data has yet to indicate a nationwide epidemic of theft, leaving us only to guess at the true scale of the problem — then and now.\u003c/p>\n\u003ch3>How big of a problem is retail theft?\u003c/h3>\n\u003cp>Most retailers say their top worry is “organized retail crime” — coordinated operations in which people tend to steal and offload in bulk, often through online stores. Security experts argue that criminal rings proliferated as the COVID-19 pandemic ebbed, in part thanks to understaffed stores and soaring online demand.\u003c/p>\n\u003cp>However, companies do not share data on goods stolen, let alone stolen in a specific manner. And individual stores often \u003ca href=\"https://www.npr.org/2023/11/29/1215568143/its-peak-shopping-and-shoplifting-season-cops-are-stepping-up-antitheft-tactics\">don’t report incidents to the police\u003c/a>.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"More on the tampon tax ","tag":"retail-theft"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Instead, the most commonly cited figure comes from an annual National Retail Federation survey that asks retailers to assess “shrink,” a much broader measure. Overall, \u003ca href=\"https://nrf.com/research/national-retail-security-survey-2023\">the latest survey\u003c/a> attributes about 36% of shrink to shoplifting and organized theft, 29% to theft by employees and 27% to mistakes in tracking, accounting or other errors.\u003c/p>\n\u003cp>The survey makes eye-popping estimates: Retailers lost $112 billion to shrink in 2022, the most recent figure. Using the given breakdown, this could mean stores lost over $40 billion that year to outside theft.\u003c/p>\n\u003cp>But the picture is not that clear. For one thing, the dollar value of shrink is calculated based on a percentage of retailers’ sales, and in 2022, shoppers went on a \u003ca href=\"https://www.npr.org/2022/11/25/1139231005/black-friday-shoppers-are-expected-to-spend-more-money-due-to-inflation\">record buying spree\u003c/a>.\u003c/p>\n\u003cp>The survey shows the scale of shrink has barely changed in the past decade. In 2022, retailers, on average, said shrink affected 1.6% of sales — the same as in 2020 and 2019. In other years, the average hovered around 1.4%, which\u003ca href=\"https://wwd.com/feature/nrf-inventory-retailers-2014-survey-10165709/\"> at one point was reported\u003c/a> as the lowest rate in two decades.\u003c/p>\n\u003cp>When the next survey is released in the coming months, it may show shrink was a substantially bigger problem last year, at around 2% of sales, according to a report by the investment bank William Blair.\u003c/p>\n\u003cp>Still, the analysts surmised that retailers also likely used crime as a cover for closures of underperforming locations and lackluster financial results, making up for shoppers’ tightening budgets, for example, or a glut of unpopular products.\u003c/p>\n\u003cp>“While theft is likely elevated,” the report said, “companies are also likely using the opportunity to draw attention away from margin headwinds,” meaning other factors that eroded their profits, such as deeper discounts or poor management of inventory.\u003c/p>\n\u003ch3>What happened at Walgreens and Target\u003c/h3>\n\u003cp>Walgreens and Target illustrate how opaque and complicated the question of theft can be.\u003c/p>\n\u003cp>In late 2021, Walgreens shut down five stores in San Francisco, citing skyrocketing organized retail crime. One of the stores appeared in a \u003ca href=\"https://twitter.com/LyanneMelendez/status/1404574079156318210?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1404574079156318210%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fsfist.com%2F2021%2F06%2F21%2Fthief-filmed-shoplifting-at-san-francisco-walgreens-in-viral-video-arrested-after-attempting-to-steal-again%2F\">viral video\u003c/a> of a thief loading up a trash bag while being filmed by several people, including a security guard. Later, a \u003cem>San Francisco Chronicle\u003c/em> \u003ca href=\"https://www.sfchronicle.com/sf/article/Is-shoplifting-forcing-Walgreens-to-cut-back-in-16536960.php\">data analysis found\u003c/a> that one of the closing stores had reported only seven shoplifting incidents that year, fewer than in 2018.\u003c/p>\n\u003cp>Then, in January 2023, Walgreens’ finance chief shocked the industry by saying, “\u003ca href=\"https://www.fool.com/earnings/call-transcripts/2023/01/05/walgreens-boots-alliance-wba-q1-2023-earnings-call/\">Maybe we cried too much last year\u003c/a>” over thefts. He said shrink had declined. The chain would scale back anti-theft spending and rely more on law enforcement than “largely ineffective” security companies.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘Let me be clear. It is very real — it is an industry problem. The urban area, in particular in some cities, is challenged, some more than others. We believe that it’s something that is going to take some time.’","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Tim Wentworth, CEO, Walgreens","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Now, the company’s leadership has changed. New finance chief Manmohan Mahajan \u003ca href=\"https://www.fool.com/earnings/call-transcripts/2024/01/16/walgreens-boots-alliance-wba-q1-2024-earnings-call/\">told investors in January\u003c/a> that shrink “continues to be a systemic issue” for retailers. Later, new CEO Tim Wentworth said he didn’t expect things to improve in 2024.\u003c/p>\n\u003cp>“Let me be clear. It is very real — it is an industry problem,” Wentworth said at an \u003ca href=\"https://seekingalpha.com/article/4661739-walgreens-boots-alliance-inc-wba-j-p-morgan-42nd-annual-healthcare-conference-transcript\">industry conference\u003c/a>. “The urban area, in particular in some cities, is challenged, some more than others. We believe that it’s something that is going to take some time.”\u003c/p>\n\u003cp>Target took center stage on retail crime after November 2022, when executives got specific: They said shrink could cost the chain $600 million over the year.\u003c/p>\n\u003cp>They kept focusing on it. In May 2023, they said shrink would reduce Target’s annual profits \u003ca href=\"https://corporate.target.com/getmedia/a32499c2-0f20-4d33-9d6b-2265cf7fd95d/2023-05-17-Q1-Transcript-TGT.pdf\">by over $500 million\u003c/a> from a year earlier. In August, CEO Brian Cornell \u003ca href=\"https://corporate.target.com/getmedia/d2af905f-82f7-4602-ba27-053e6cf50c1a/2023-08-16-Q2-Transcript-TGT.pdf\">said violent thefts\u003c/a> at stores increased 120% in the first five months of 2023, compared with the same period in 2022.\u003c/p>\n\u003cp>In September, Target \u003ca href=\"https://corporate.target.com/press/statement/2023/09/target-closes-select-stores-to-prioritize-team-member-and-guest-safety\">announced it was closing nine locations\u003c/a> in New York City, Seattle, the San Francisco Bay Area and Portland, Oregon, because of theft and organized retail crime. Later, \u003ca href=\"https://www.cnbc.com/2023/12/19/target-store-closures-theft-and-crime-higher-nearby.html\">data analysis by CNBC\u003c/a> showed that as Target closed those stores, it chose to keep operating nearby locations that had reported more crime incidents but that also served more and wealthier shoppers.\u003c/p>\n\u003cp>Target described numerous anti-theft investments, including locked merchandise, de-escalation training and more security staff. The chain was also delivering disappointing financial reports: Inflation had shoppers prioritizing necessities, and Target took a big hit. Sales \u003ca href=\"https://corporate.target.com/press/release/2023/02/target-corporation-reports-fourth-quarter-and-full\">barely grew in 2022\u003c/a> and \u003ca href=\"https://corporate.target.com/press/release/2024/03/target-corporation-reports-fourth-quarter-and-full-year-2023-earnings\">declined in 2023\u003c/a> for the first time in years.\u003c/p>\n\u003ch3>\u003cstrong>Safety measures turn off shoppers \u003c/strong>\u003c/h3>\n\u003cp>Of course, big-picture statistics can mask trouble in specific places.\u003c/p>\n\u003cp>Shoplifting, for example, rose between 2019 and 2023 in New York City, Los Angeles, Virginia Beach and Dallas, while declining in over a dozen other cities, according to a \u003ca href=\"https://counciloncj.org/shoplifting-trends-what-you-need-to-know/\">November report\u003c/a> by the Council on Criminal Justice, a nonpartisan think tank.\u003c/p>\n\u003cp>And shoppers often encounter a clear sign of stepped-up security: products like makeup, baby formula and laundry detergent locked behind plexiglass or even replaced with photographs. Katherine Black at the consulting firm Kearney said stores would not choose this if they didn’t have to.\u003c/p>\n\u003cp>“To combat this problem, inherently, they’re putting in place measures that detract sales,” Black explained.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘When I think about shrink, I’ll start with the word ‘progress. I think we’re seeing really solid progress and greater awareness at the national, state and local level.’","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Brian Cornell, CEO, Target","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Almost a third of shoppers say locked-up products hurt their perception of a store, according to Kearney’s October survey of 500 adults in the U.S. and Canada. More than a quarter say this prompts them to abandon the purchase and 46% say they end up buying somewhere else.\u003c/p>\n\u003cp>No major retailer has disclosed sales lost over heightened security so far. During Target’s latest earnings call, one analyst asked executives about this, but they did not respond directly.\u003c/p>\n\u003cp>“When I think about shrink, I’ll start with the word ‘progress,'” Cornell said. “I think we’re seeing really solid progress and greater awareness at the national, state and local level.”\u003c/p>\n\u003cp>Retailers have long lobbied for \u003ca href=\"https://www.npr.org/2020/10/16/923844907/when-shoplifting-is-a-felony-retailers-back-harsher-penalties-for-store-theft\">tougher prosecution of shoplifters\u003c/a> and a crackdown on online platforms used by resellers, including Amazon and Facebook Marketplace.\u003c/p>\n\u003cp>Over the past year, \u003ca href=\"https://www.cnbc.com/2023/08/11/organized-retail-crime-nine-states-pass-laws-to-crack-down-on-theft.html\">several states\u003c/a> have gone after organized retail crime with new laws. Leaders in \u003ca href=\"https://laist.com/news/criminal-justice/la-county-is-getting-a-funding-boost-to-fight-smash-grab-theft\">California\u003c/a>, New York and other places have put funding priority on “smash-and-grab” crimes. Congress \u003ca href=\"https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section45f&num=0&edition=prelim\">passed a law\u003c/a> requiring online marketplaces to verify the identities of high-volume sellers.\u003c/p>\n\u003cp>Retailers also claim their security investments are starting to show results.\u003c/p>\n\u003cp>This can include tracking alarms or moving high-risk products closer to registers. Many stores began restricting the use of self-checkout, including \u003ca href=\"https://www.usatoday.com/story/money/shopping/2024/03/06/walmart-self-checkout-update/72866539007/\">Walmart \u003c/a>and \u003ca href=\"https://www.cnn.com/2023/11/18/business/target-self-checkout-new-system/index.html\">Target\u003c/a>. More retailers weighed changing the layout of some stores to funnel all shoppers through a single entrance, a staple security protocol at Best Buy and Costco. Best Buy, at one point, said it added more workers to walk the floor, which experts say helps deter many criminals.\u003c/p>\n\u003cdiv class=\"fullattribution\">\u003cem>Copyright 2024 NPR. To see more, visit https://www.npr.org.\u003cimg decoding=\"async\" src=\"https://www.google-analytics.com/__utm.gif?utmac=UA-5828686-4&utmdt=Retailers+howled+about+theft+last+year.+Why+not+now%3F&utme=8(APIKey)9(MDAxOTAwOTE4MDEyMTkxMDAzNjczZDljZA004)\">\u003c/em>\u003c/div>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11978954/retailers-howled-about-theft-last-year-why-not-now","authors":["byline_news_11978954"],"categories":["news_1758","news_8"],"tags":["news_33895","news_28103","news_30045","news_5775","news_1563"],"featImg":"news_11978955","label":"source_news_11978954"},"news_11977956":{"type":"posts","id":"news_11977956","meta":{"index":"posts_1591205157","site":"news","id":"11977956","score":null,"sort":[1709652607000]},"guestAuthors":[],"slug":"the-deal-that-led-to-californias-fast-food-minimum-wage-bump-may-be-unraveling","title":"The Deal That Led to a Wage Bump for California's Fast Food Workers May Be Unraveling","publishDate":1709652607,"format":"standard","headTitle":"The Deal That Led to a Wage Bump for California’s Fast Food Workers May Be Unraveling | KQED","labelTerm":{},"content":"\u003cp>Both sides billed the high-profile California fast food deal last year as a resolution to two years of\u003cstrong> \u003c/strong>escalating political tensions.\u003c/p>\n\u003cp>One of the \u003ca href=\"https://calmatters.org/politics/2023/09/california-labor-legislature/\">workers’ biggest wins in the Legislature\u003c/a> during “hot labor summer,” the \u003ca href=\"https://calmatters.org/politics/2023/09/california-fast-food-deal/\">agreement in the session’s final week resulted\u003c/a> in a minimum wage hike for employees and some guarantees for companies. In exchange, the industry agreed to stop fighting the issue at the ballot box, and lawmakers backed off on even stricter regulations.\u003c/p>\n\u003cp>But a month before the new wage — $20 an hour for workers at fast food chains with 60 or more locations nationally — goes into effect, the temporary truce is unraveling.\u003c/p>\n\u003cp>As the Legislature \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB610\" target=\"_blank\" rel=\"noreferrer noopener\">pushes through a bill\u003c/a> exempting fast food restaurants in airports, hotels and convention centers, Republican lawmakers who had vehemently pushed back on the wage hike \u003ca href=\"https://calmatters.org/newsletter/proposition-1-newsom-voters/#wm-story-1\">are calling for the deal to be investigated\u003c/a> after Bloomberg reported that Gov. Gavin Newsom pushed for a bakery exemption that benefited a donor who owns two dozen Panera locations in California.\u003c/p>\n\u003cp>On Thursday, Newsom’s office denied the story and said their lawyers believe Panera and other chain bakeries aren’t actually exempt — a decision that could lead numerous additional businesses to scramble to prepare for a wage hike. In a Bloomberg story Friday, \u003ca href=\"https://www.msn.com/en-us/money/other/billionaire-flynn-says-he-met-newsom-staff-in-lobbying-effort-against-wage-bill/ar-BB1jbt8c\" target=\"_blank\" rel=\"noreferrer noopener\">billionaire Greg Flynn says\u003c/a> he did not seek a special exemption, though he met with the governor’s staff along with other restaurant owners to suggest a carve-out for “fast casual” restaurants. On Saturday, the California Restaurant Association weighed in, saying there was \u003ca href=\"https://x.com/CalRestaurants/status/1764009596455407826?s=20\" target=\"_blank\" rel=\"noreferrer noopener\">never any discussion of any brand seeking an exemption\u003c/a>, including Panera. And in an \u003ca href=\"https://x.com/JWheelertv/status/1764113769737896371?s=20\" target=\"_blank\" rel=\"noreferrer noopener\">interview with KNBC aired Sunday\u003c/a>, Newsom, himself, called the report “absurd.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The Service Employees International Union, which pushed for the legislation, said it agreed with Newsom’s reasoning. Senate Republican leader \u003ca href=\"https://calmatters.org/legislator-tracker/brian-jones-1968/\">Brian Jones\u003c/a> called for scrapping the fast food agreement altogether.\u003c/p>\n\u003cp>The renewed fights have moved to the local level, too.\u003c/p>\n\u003cp>Some franchise owners \u003ca href=\"https://www.sfchronicle.com/politics/article/california-fast-act-18678650.php\" target=\"_blank\" rel=\"noreferrer noopener\">are cutting jobs\u003c/a> in advance of the minimum wage increase, while workers have begun pushing for additional benefits in San Jose and Los Angeles, prompting businesses to gear up to lobby back.\u003c/p>\n\u003cp>Worker advocates are also pledging to push for job security measures once a \u003ca href=\"https://calmatters.org/california-divide/2024/01/california-fast-food-council-2/\">first-in-the-nation fast food regulatory council\u003c/a> (another part of the deal) is in place. On Friday, Newsom \u003ca href=\"https://www.gov.ca.gov/2024/03/01/governor-newsom-announces-appointments-3-1-24/\">announced his seven appointees\u003c/a> to the council, including Chairperson Nicholas Hardeman, chief of staff to state Senate leader emeritus Toni Atkins. The governor’s other picks are a mix of franchisees, workers and others. Legislative leaders picked the final two members, both union leaders.\u003c/p>\n\u003cp>And some McDonald’s franchise owners, who have complained they were frozen out from last year’s deal-making, are retaliating against state lawmakers who supported it as they seek other public offices in Tuesday’s primary. The new \u003ca href=\"https://www.caafob.org/\" target=\"_blank\" rel=\"noreferrer noopener\">California Alliance of Family Owned Businesses\u003c/a> PAC formed earlier this year as an offshoot of prior lobbying by owners of local McDonald’s restaurants.[aside label=\"Related Stories\" tag=\"fast-food-workers\"]Its opening salvo: \u003ca href=\"https://www.sacbee.com/news/politics-government/capitol-alert/article285712731.html\" target=\"_blank\" rel=\"noreferrer noopener\">attack mailers\u003c/a> against Assemblymembers \u003ca href=\"https://calmatters.org/legislator-tracker/chris-holden-1960/\">Chris Holden\u003c/a>, a Pasadena Democrat running for the Los Angeles County Board of Supervisors, and \u003ca href=\"https://calmatters.org/legislator-tracker/kevin-mccarty-1972/\">Kevin McCarty\u003c/a>, a Sacramento Democrat running in a crowded primary for mayor.\u003c/p>\n\u003cp>“In order to protect our family businesses in California now and into the future, it has become clear that we must more actively engage in politics across the state,” Kerri Harper-Howie, an alliance board member and a McDonald’s owner in Los Angeles County, said in a statement. “Politicians should know that if they agree to carry water for those who threaten our businesses, they will be opposed.”\u003c/p>\n\u003cp>Holden authored the bill forming a fast food council and mandating the wage hike, while McCarty was one of many Democrats who voted for it. The PAC has spent more than $300,000 against each. McCarty’s campaign manager, Andrew Acosta, said business owners are “trying to punish him for standing up for workers’ rights and higher wages.”\u003c/p>\n\u003cp>The PAC is also spending in an Inland Empire Assembly primary and in favor of Assemblymember \u003ca href=\"https://calmatters.org/legislator-tracker/tim-grayson-1967/\">Tim Grayson\u003c/a>‘s bid for the state Senate. Grayson, a Concord Democrat, voted in favor of the fast food deal last year.\u003c/p>\n\u003cp>The franchisee committee has spent more than $1.8 million so far this year. That’s not much compared to the tens of millions of dollars fast food giants such as McDonald’s and national industry groups poured into a \u003ca href=\"https://calmatters.org/politics/2022/12/california-elections-industries-laws/\">campaign account for the effort to repeal\u003c/a> the 2022 fast food law. The referendum was ultimately\u003cstrong> \u003c/strong>pulled from the ballot in last year’s deal. However, it indicates the increasing activity of franchise owners in state and local politics.\u003c/p>\n\u003cp>Marisol Sanchez, who owns 14 McDonald’s restaurants in the High Desert north of San Bernardino and helps run her family’s larger franchise business, said she never got involved in politics before last year. But when SEIU pushed a bill forcing fast food corporations to share liability for labor violations with franchise owners, Sanchez saw “the destruction of the franchise model, and basically … the destruction of my livelihood.”\u003c/p>\n\u003cp>“It was a quick jumping into action,” she said, which involved meeting with lawmakers and now, contributing to the PAC.[pullquote size='medium' align='right' citation=\"McDonald's Franchise Owner Marisol Sanchez\"]‘I think we took for granted that the community understood that we were not all corporate-owned restaurants.’[/pullquote]The joint liability bill ultimately became a bargaining chip to force a deal on the $20 wage. Sanchez said franchise owners were the “collateral damage.” She attributes that in part to a prior lack of political organizing by franchise owners.\u003c/p>\n\u003cp>“We weren’t communicating and organizing,” she said. “I think we took for granted that the community understood that we were not all corporate-owned restaurants.”\u003c/p>\n\u003cp>She said she’s always tried to offer starting wages of $1 more than the minimum wage and had been in the middle of an expansion in recent years, buoyed in part by more Californians moving inland during the COVID-19 pandemic. But she’s cutting back in advance of the wage hike, putting off a drive-thru remodel and slowing down hiring.\u003c/p>\n\u003cp>The union that pushed for the deal criticized the new PAC but said it would be unsuccessful.\u003c/p>\n\u003cp>“It’s shameful for these multibillion-dollar corporations to attack these pro-worker champions — and voters are going to see right through it,” Arnulfo De La Cruz, president of SEIU Local 2015, said in a statement.\u003c/p>\n\u003cp>Restaurant giants and a handful of local franchise owners have also registered this year to lobby in San Jose, where the new \u003ca href=\"https://californiafastfoodworkersunion.org/\" target=\"_blank\" rel=\"noreferrer noopener\">Fast Food Workers Union\u003c/a> is pursuing a city ordinance mandating employers provide paid time off, predictable scheduling and “know your rights” training.\u003c/p>\n\u003cfigure id=\"attachment_11978010\" class=\"wp-caption aligncenter\" style=\"max-width: 1568px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11978010\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/08312023_Fast-Food-Worker-Convention-Rally_RL_CM_051-ezgif.com-webp-to-jpg-converter.jpg\" alt=\"Workers hold up signs during a rally.\" width=\"1568\" height=\"1045\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/08312023_Fast-Food-Worker-Convention-Rally_RL_CM_051-ezgif.com-webp-to-jpg-converter.jpg 1568w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/08312023_Fast-Food-Worker-Convention-Rally_RL_CM_051-ezgif.com-webp-to-jpg-converter-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/08312023_Fast-Food-Worker-Convention-Rally_RL_CM_051-ezgif.com-webp-to-jpg-converter-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/08312023_Fast-Food-Worker-Convention-Rally_RL_CM_051-ezgif.com-webp-to-jpg-converter-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/08312023_Fast-Food-Worker-Convention-Rally_RL_CM_051-ezgif.com-webp-to-jpg-converter-1536x1024.jpg 1536w\" sizes=\"(max-width: 1568px) 100vw, 1568px\">\u003cfigcaption class=\"wp-caption-text\">Fast food workers rally at the state Capitol in Sacramento on Aug. 31, 2023. \u003ccite>(Rahul Lal/CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In recent weeks, the union has accused one city council member, David Cohen, of reconsidering his support in response to industry influence. Several franchise owners this month contributed to a new PAC whose main spending so far has been sending $18,000 to another political action committee that has bought ads against Cohen’s opponent in his re-election bid.\u003c/p>\n\u003cp>The contributions were \u003ca href=\"https://sanjosespotlight.com/san-jose-fast-food-restaurant-union-workers-question-city-council-officials-david-cohen-support/\" target=\"_blank\" rel=\"noreferrer noopener\">first reported\u003c/a> by \u003cem>San Jose Spotlight\u003c/em>. Cohen’s office did not respond to a request for comment, but he told Spotlight he hadn’t withdrawn any support and was only considering if the proposed ordinance would work.\u003c/p>\n\u003cp>Celeste Perez, a Burger King shift leader in San Jose who has been advocating for the ordinance, said she wants a firm commitment from council members and accused Cohen of shutting workers like her out after meeting with industry lobbyists.\u003c/p>\n\u003cp>Perez, 43, makes $17.75 an hour and said the wage hike to $20 in April was supposed to \u003ca href=\"https://calmatters.org/california-divide/2023/09/minimum-wage-california/\">help her keep up with inflation\u003c/a>. This year, the restaurant cut her hours by five a week due to the upcoming wage increase and slow sales at the beginning of the year, she said, but she still has the same amount of work to do and often deals with threatening customers.[pullquote size='medium' align='right' citation=\"Burger King Shift Leader Celeste Perez\"]‘It’s really important for us to keep (moving) forward, not backward. I think $20 is only one step.’[/pullquote]She wants to afford to take a family vacation for the first time in seven or eight years, or at least attend her son’s soccer games, she said.”It’s really important for us to keep (moving) forward, not backward,” she said. “I think $20 is only one step.”\u003c/p>\n\u003cp>On Friday, the union called for a similar proposal in Los Angeles. Neither ordinance has been formally introduced yet.\u003c/p>\n\u003cp>As part of last year’s deal, the state’s new fast food council is prohibited from enacting new policies on time off and scheduling — and the deal also prohibited cities from raising fast food wages beyond the new statewide minimum. But there’s nothing to stop local governments from pursuing other regulations, which would further\u003cstrong> \u003c/strong>raise costs for operators.\u003c/p>\n\u003cp>The proposals and the bakery exemption controversy are likely to be more fuel for franchise owners to fight back.\u003c/p>\n\u003cp>Brian Hom, the owner of two Vitality Bowls health food restaurants in San Jose, said he’s begun using his relationships with city council members to oppose the local proposal. He said he already sets employee schedules two weeks in advance but is wary that a predictable scheduling requirement may prevent him from asking workers to come in last minute if someone calls out sick.\u003c/p>\n\u003cp>Hom said he has the option to open a third store but has declined to do so due to the prospect of new requirements. He and other franchise owners are discussing with the company how much to raise prices in April and hope that’s enough to cover the wage increase without cutting staff or their hours.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>“Businesses are going to speak up,” he said. “The $20 is already going to cause restaurants to close.”\u003c/p>\n\n","blocks":[],"excerpt":"Republicans want to scrap a raise for some fast food workers, and McDonald’s franchisees are funding a committee that is attacking Democrats who supported the law and are seeking local office in the primary.","status":"publish","parent":0,"modified":1709665525,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":33,"wordCount":1792},"headData":{"title":"The Deal That Led to a Wage Bump for California's Fast Food Workers May Be Unraveling | KQED","description":"Republicans want to scrap a raise for some fast food workers, and McDonald’s franchisees are funding a committee that is attacking Democrats who supported the law and are seeking local office in the primary.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"source":"CalMatters","sourceUrl":"https://calmatters.org/","sticky":false,"nprByline":"Jeanne Kuang ","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/11977956/the-deal-that-led-to-californias-fast-food-minimum-wage-bump-may-be-unraveling","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Both sides billed the high-profile California fast food deal last year as a resolution to two years of\u003cstrong> \u003c/strong>escalating political tensions.\u003c/p>\n\u003cp>One of the \u003ca href=\"https://calmatters.org/politics/2023/09/california-labor-legislature/\">workers’ biggest wins in the Legislature\u003c/a> during “hot labor summer,” the \u003ca href=\"https://calmatters.org/politics/2023/09/california-fast-food-deal/\">agreement in the session’s final week resulted\u003c/a> in a minimum wage hike for employees and some guarantees for companies. In exchange, the industry agreed to stop fighting the issue at the ballot box, and lawmakers backed off on even stricter regulations.\u003c/p>\n\u003cp>But a month before the new wage — $20 an hour for workers at fast food chains with 60 or more locations nationally — goes into effect, the temporary truce is unraveling.\u003c/p>\n\u003cp>As the Legislature \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB610\" target=\"_blank\" rel=\"noreferrer noopener\">pushes through a bill\u003c/a> exempting fast food restaurants in airports, hotels and convention centers, Republican lawmakers who had vehemently pushed back on the wage hike \u003ca href=\"https://calmatters.org/newsletter/proposition-1-newsom-voters/#wm-story-1\">are calling for the deal to be investigated\u003c/a> after Bloomberg reported that Gov. Gavin Newsom pushed for a bakery exemption that benefited a donor who owns two dozen Panera locations in California.\u003c/p>\n\u003cp>On Thursday, Newsom’s office denied the story and said their lawyers believe Panera and other chain bakeries aren’t actually exempt — a decision that could lead numerous additional businesses to scramble to prepare for a wage hike. In a Bloomberg story Friday, \u003ca href=\"https://www.msn.com/en-us/money/other/billionaire-flynn-says-he-met-newsom-staff-in-lobbying-effort-against-wage-bill/ar-BB1jbt8c\" target=\"_blank\" rel=\"noreferrer noopener\">billionaire Greg Flynn says\u003c/a> he did not seek a special exemption, though he met with the governor’s staff along with other restaurant owners to suggest a carve-out for “fast casual” restaurants. On Saturday, the California Restaurant Association weighed in, saying there was \u003ca href=\"https://x.com/CalRestaurants/status/1764009596455407826?s=20\" target=\"_blank\" rel=\"noreferrer noopener\">never any discussion of any brand seeking an exemption\u003c/a>, including Panera. And in an \u003ca href=\"https://x.com/JWheelertv/status/1764113769737896371?s=20\" target=\"_blank\" rel=\"noreferrer noopener\">interview with KNBC aired Sunday\u003c/a>, Newsom, himself, called the report “absurd.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The Service Employees International Union, which pushed for the legislation, said it agreed with Newsom’s reasoning. Senate Republican leader \u003ca href=\"https://calmatters.org/legislator-tracker/brian-jones-1968/\">Brian Jones\u003c/a> called for scrapping the fast food agreement altogether.\u003c/p>\n\u003cp>The renewed fights have moved to the local level, too.\u003c/p>\n\u003cp>Some franchise owners \u003ca href=\"https://www.sfchronicle.com/politics/article/california-fast-act-18678650.php\" target=\"_blank\" rel=\"noreferrer noopener\">are cutting jobs\u003c/a> in advance of the minimum wage increase, while workers have begun pushing for additional benefits in San Jose and Los Angeles, prompting businesses to gear up to lobby back.\u003c/p>\n\u003cp>Worker advocates are also pledging to push for job security measures once a \u003ca href=\"https://calmatters.org/california-divide/2024/01/california-fast-food-council-2/\">first-in-the-nation fast food regulatory council\u003c/a> (another part of the deal) is in place. On Friday, Newsom \u003ca href=\"https://www.gov.ca.gov/2024/03/01/governor-newsom-announces-appointments-3-1-24/\">announced his seven appointees\u003c/a> to the council, including Chairperson Nicholas Hardeman, chief of staff to state Senate leader emeritus Toni Atkins. The governor’s other picks are a mix of franchisees, workers and others. Legislative leaders picked the final two members, both union leaders.\u003c/p>\n\u003cp>And some McDonald’s franchise owners, who have complained they were frozen out from last year’s deal-making, are retaliating against state lawmakers who supported it as they seek other public offices in Tuesday’s primary. The new \u003ca href=\"https://www.caafob.org/\" target=\"_blank\" rel=\"noreferrer noopener\">California Alliance of Family Owned Businesses\u003c/a> PAC formed earlier this year as an offshoot of prior lobbying by owners of local McDonald’s restaurants.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"label":"Related Stories ","tag":"fast-food-workers"},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>Its opening salvo: \u003ca href=\"https://www.sacbee.com/news/politics-government/capitol-alert/article285712731.html\" target=\"_blank\" rel=\"noreferrer noopener\">attack mailers\u003c/a> against Assemblymembers \u003ca href=\"https://calmatters.org/legislator-tracker/chris-holden-1960/\">Chris Holden\u003c/a>, a Pasadena Democrat running for the Los Angeles County Board of Supervisors, and \u003ca href=\"https://calmatters.org/legislator-tracker/kevin-mccarty-1972/\">Kevin McCarty\u003c/a>, a Sacramento Democrat running in a crowded primary for mayor.\u003c/p>\n\u003cp>“In order to protect our family businesses in California now and into the future, it has become clear that we must more actively engage in politics across the state,” Kerri Harper-Howie, an alliance board member and a McDonald’s owner in Los Angeles County, said in a statement. “Politicians should know that if they agree to carry water for those who threaten our businesses, they will be opposed.”\u003c/p>\n\u003cp>Holden authored the bill forming a fast food council and mandating the wage hike, while McCarty was one of many Democrats who voted for it. The PAC has spent more than $300,000 against each. McCarty’s campaign manager, Andrew Acosta, said business owners are “trying to punish him for standing up for workers’ rights and higher wages.”\u003c/p>\n\u003cp>The PAC is also spending in an Inland Empire Assembly primary and in favor of Assemblymember \u003ca href=\"https://calmatters.org/legislator-tracker/tim-grayson-1967/\">Tim Grayson\u003c/a>‘s bid for the state Senate. Grayson, a Concord Democrat, voted in favor of the fast food deal last year.\u003c/p>\n\u003cp>The franchisee committee has spent more than $1.8 million so far this year. That’s not much compared to the tens of millions of dollars fast food giants such as McDonald’s and national industry groups poured into a \u003ca href=\"https://calmatters.org/politics/2022/12/california-elections-industries-laws/\">campaign account for the effort to repeal\u003c/a> the 2022 fast food law. The referendum was ultimately\u003cstrong> \u003c/strong>pulled from the ballot in last year’s deal. However, it indicates the increasing activity of franchise owners in state and local politics.\u003c/p>\n\u003cp>Marisol Sanchez, who owns 14 McDonald’s restaurants in the High Desert north of San Bernardino and helps run her family’s larger franchise business, said she never got involved in politics before last year. But when SEIU pushed a bill forcing fast food corporations to share liability for labor violations with franchise owners, Sanchez saw “the destruction of the franchise model, and basically … the destruction of my livelihood.”\u003c/p>\n\u003cp>“It was a quick jumping into action,” she said, which involved meeting with lawmakers and now, contributing to the PAC.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘I think we took for granted that the community understood that we were not all corporate-owned restaurants.’","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"McDonald's Franchise Owner Marisol Sanchez","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>The joint liability bill ultimately became a bargaining chip to force a deal on the $20 wage. Sanchez said franchise owners were the “collateral damage.” She attributes that in part to a prior lack of political organizing by franchise owners.\u003c/p>\n\u003cp>“We weren’t communicating and organizing,” she said. “I think we took for granted that the community understood that we were not all corporate-owned restaurants.”\u003c/p>\n\u003cp>She said she’s always tried to offer starting wages of $1 more than the minimum wage and had been in the middle of an expansion in recent years, buoyed in part by more Californians moving inland during the COVID-19 pandemic. But she’s cutting back in advance of the wage hike, putting off a drive-thru remodel and slowing down hiring.\u003c/p>\n\u003cp>The union that pushed for the deal criticized the new PAC but said it would be unsuccessful.\u003c/p>\n\u003cp>“It’s shameful for these multibillion-dollar corporations to attack these pro-worker champions — and voters are going to see right through it,” Arnulfo De La Cruz, president of SEIU Local 2015, said in a statement.\u003c/p>\n\u003cp>Restaurant giants and a handful of local franchise owners have also registered this year to lobby in San Jose, where the new \u003ca href=\"https://californiafastfoodworkersunion.org/\" target=\"_blank\" rel=\"noreferrer noopener\">Fast Food Workers Union\u003c/a> is pursuing a city ordinance mandating employers provide paid time off, predictable scheduling and “know your rights” training.\u003c/p>\n\u003cfigure id=\"attachment_11978010\" class=\"wp-caption aligncenter\" style=\"max-width: 1568px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11978010\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/08312023_Fast-Food-Worker-Convention-Rally_RL_CM_051-ezgif.com-webp-to-jpg-converter.jpg\" alt=\"Workers hold up signs during a rally.\" width=\"1568\" height=\"1045\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/08312023_Fast-Food-Worker-Convention-Rally_RL_CM_051-ezgif.com-webp-to-jpg-converter.jpg 1568w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/08312023_Fast-Food-Worker-Convention-Rally_RL_CM_051-ezgif.com-webp-to-jpg-converter-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/08312023_Fast-Food-Worker-Convention-Rally_RL_CM_051-ezgif.com-webp-to-jpg-converter-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/08312023_Fast-Food-Worker-Convention-Rally_RL_CM_051-ezgif.com-webp-to-jpg-converter-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/03/08312023_Fast-Food-Worker-Convention-Rally_RL_CM_051-ezgif.com-webp-to-jpg-converter-1536x1024.jpg 1536w\" sizes=\"(max-width: 1568px) 100vw, 1568px\">\u003cfigcaption class=\"wp-caption-text\">Fast food workers rally at the state Capitol in Sacramento on Aug. 31, 2023. \u003ccite>(Rahul Lal/CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In recent weeks, the union has accused one city council member, David Cohen, of reconsidering his support in response to industry influence. Several franchise owners this month contributed to a new PAC whose main spending so far has been sending $18,000 to another political action committee that has bought ads against Cohen’s opponent in his re-election bid.\u003c/p>\n\u003cp>The contributions were \u003ca href=\"https://sanjosespotlight.com/san-jose-fast-food-restaurant-union-workers-question-city-council-officials-david-cohen-support/\" target=\"_blank\" rel=\"noreferrer noopener\">first reported\u003c/a> by \u003cem>San Jose Spotlight\u003c/em>. Cohen’s office did not respond to a request for comment, but he told Spotlight he hadn’t withdrawn any support and was only considering if the proposed ordinance would work.\u003c/p>\n\u003cp>Celeste Perez, a Burger King shift leader in San Jose who has been advocating for the ordinance, said she wants a firm commitment from council members and accused Cohen of shutting workers like her out after meeting with industry lobbyists.\u003c/p>\n\u003cp>Perez, 43, makes $17.75 an hour and said the wage hike to $20 in April was supposed to \u003ca href=\"https://calmatters.org/california-divide/2023/09/minimum-wage-california/\">help her keep up with inflation\u003c/a>. This year, the restaurant cut her hours by five a week due to the upcoming wage increase and slow sales at the beginning of the year, she said, but she still has the same amount of work to do and often deals with threatening customers.\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘It’s really important for us to keep (moving) forward, not backward. I think $20 is only one step.’","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Burger King Shift Leader Celeste Perez","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>She wants to afford to take a family vacation for the first time in seven or eight years, or at least attend her son’s soccer games, she said.”It’s really important for us to keep (moving) forward, not backward,” she said. “I think $20 is only one step.”\u003c/p>\n\u003cp>On Friday, the union called for a similar proposal in Los Angeles. Neither ordinance has been formally introduced yet.\u003c/p>\n\u003cp>As part of last year’s deal, the state’s new fast food council is prohibited from enacting new policies on time off and scheduling — and the deal also prohibited cities from raising fast food wages beyond the new statewide minimum. But there’s nothing to stop local governments from pursuing other regulations, which would further\u003cstrong> \u003c/strong>raise costs for operators.\u003c/p>\n\u003cp>The proposals and the bakery exemption controversy are likely to be more fuel for franchise owners to fight back.\u003c/p>\n\u003cp>Brian Hom, the owner of two Vitality Bowls health food restaurants in San Jose, said he’s begun using his relationships with city council members to oppose the local proposal. He said he already sets employee schedules two weeks in advance but is wary that a predictable scheduling requirement may prevent him from asking workers to come in last minute if someone calls out sick.\u003c/p>\n\u003cp>Hom said he has the option to open a third store but has declined to do so due to the prospect of new requirements. He and other franchise owners are discussing with the company how much to raise prices in April and hope that’s enough to cover the wage increase without cutting staff or their hours.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“Businesses are going to speak up,” he said. “The $20 is already going to cause restaurants to close.”\u003c/p>\n\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11977956/the-deal-that-led-to-californias-fast-food-minimum-wage-bump-may-be-unraveling","authors":["byline_news_11977956"],"categories":["news_1758","news_8"],"tags":["news_31475","news_32236","news_29044","news_16","news_2141"],"featImg":"news_11978011","label":"source_news_11977956"},"news_11975688":{"type":"posts","id":"news_11975688","meta":{"index":"posts_1591205157","site":"news","id":"11975688","score":null,"sort":[1707924610000]},"guestAuthors":[],"slug":"how-one-rural-couple-is-keeping-their-business-alive-despite-pges-rate-hike","title":"How One Rural Couple Is Keeping Their Business Alive Despite PG&E's Rate Hike","publishDate":1707924610,"format":"standard","headTitle":"How One Rural Couple Is Keeping Their Business Alive Despite PG&E’s Rate Hike | KQED","labelTerm":{},"content":"\u003cp>Twelve years ago, when Tammy and Tim Babcock saw businesses closing in rural northeast California and families moving to bigger cities, they purchased the Big Valley Market in Bieber to revitalize the dying town.\u003c/p>\n\u003cp>Since then, their grocery store has become crucial to the day-to-day lives of residents in the surrounding communities, especially to the 200 or so people living in Bieber, about 250 miles north of Sacramento.\u003c/p>\n\u003cp>[pullquote size=\"medium\" align=\"right\" citation=\"Tammy Babcock, co-owner, Big Valley Market in Bieber\"]‘If we close, people have to cross over a mountain, and in the winter the road is covered with ice and snow. We have to help take care of our people, our senior citizens.’ [/pullquote]But the store is struggling to survive. Tammy and Tim Babcock blame recent rate increases in their electric bill.\u003c/p>\n\u003cp>In 2023, the Babcocks paid Pacific Gas & Electric nearly $40,000 for electricity — about two-thirds of the store’s annual profit, Tammy Babcock said. This year, rates for businesses their size will grow by 17%, the utility said.\u003c/p>\n\u003cp>“I called PG&E, and I said, ‘Are you trying to put us out of business? Are you trying to kill small-town America?’” said Tammy Babcock, 62, as she stood in the store she works outside jobs to sustain.\u003c/p>\n\u003cfigure id=\"attachment_11975707\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11975707\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-07-800x533.jpeg\" alt=\"A view of a street down the middle with a few cars on it.\" width=\"800\" height=\"533\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-07-800x533.jpeg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-07-1020x680.jpeg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-07-160x107.jpeg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-07-1536x1024.jpeg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-07-1920x1280.jpeg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-07.jpeg 2000w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A view down Bridge St. in Bieber, Lassen County, on Jan. 30. 2024. \u003ccite>(Miguel Gutierrez Jr./CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>As major California utilities like PG&E seek higher energy rates this year — in part to pay for upgrades and safety improvements — business owners like the Babcocks said that it’s pushing already struggling businesses toward closure. If that happens to the Babcocks’ market, the surrounding neighborhoods and towns would suffer.\u003c/p>\n\u003cp>[aside tag=\"pge, electric-bills\" label=\"More Related Stories\"]The California Public Utilities Commission, which regulates utilities, \u003ca href=\"https://calmatters.org/california-divide/2023/11/electric-rates-california/\">approved the latest rate hike in November\u003c/a>. At the time, the commission said it was to ensure that PG&E maintains a “safe and reliable energy system.” The rate hike, which took effect on Jan. 1, affected tens of thousands of residential and business customers.\u003c/p>\n\u003cp>For PG&E’s more than 764,000 business owner accounts, rates will rise this year by \u003ca href=\"https://www.cpuc.ca.gov/news-and-updates/all-news/cpuc-prioritizes-safety-reliability-and-affordability-in-pge-rate-case-2023\">17%–21%\u003c/a>, depending on the size and type of business.\u003c/p>\n\u003cp>Residential electric rates \u003ca href=\"https://www.publicadvocates.cpuc.ca.gov/-/media/cal-advocates-website/files/press-room/reports-and-analyses/240119-caladvocates-q4-2023-quarterly-rate-report.pdf\">have nearly doubled\u003c/a> in California over the last decade. About \u003ca href=\"https://www.publicadvocates.cpuc.ca.gov/-/media/cal-advocates-website/files/press-room/reports-and-analyses/240118-caladvocates-fixed-charge-overview-web.pdf\">1 in 5 customers, some 2.4 million, are behind in utility bills\u003c/a> by an average of $744, said the Public Advocates Office, the consumer arm of the utilities commission.\u003c/p>\n\u003ch2>Small town struggles with rate hikes\u003c/h2>\n\u003cp>In Bieber, which has very little industry, the median annual household income is about $46,000, according to the \u003ca href=\"https://www.census.gov/search-results.html?q=Bieber%2C+california&page=1&stateGeo=none&searchtype=web&cssp=SERP&_charset_=UTF-8\">U.S. census\u003c/a>.\u003c/p>\n\u003cp>The Babcocks’ market sits below the verdant Big Valley Mountains, which overlook four small towns: Nubieber, Bieber, Lookout and Adin. Fewer than 2,000 people live in this flat farmland.\u003c/p>\n\u003cp>The store is the main place to buy water, rice, bread and other necessities. The closest Walmart is in Susanville, more than 67 minutes away, and the closest Safeway is in Burney, about 44 minutes away.\u003c/p>\n\u003cfigure id=\"attachment_11975737\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11975737\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-16-800x533.jpeg\" alt=\"A woman in a purple shirt and a black apron stands in a room with produce in the background\" width=\"800\" height=\"533\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-16-800x533.jpeg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-16-1020x680.jpeg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-16-160x107.jpeg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-16-1536x1024.jpeg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-16-1920x1280.jpeg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-16.jpeg 2000w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Tammy Babcock is co-owner of the Big Valley Market in Bieber. The store serves as the main grocer, restaurant and community space for the unincorporated town of Bieber in Lassen County. \u003ccite>(Miguel Gutierrez Jr./CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In addition to selling groceries, the Babcocks also serve ready-made meals at two tables.\u003c/p>\n\u003cp>Just before noon in January, six people walked into the Big Valley store and Tim Babcock seated them as his wife went back and forth to the kitchen, serving them tacos.\u003c/p>\n\u003cp>The regulars, who have known each other for years, watched Fox News on the store TV and discussed community issues.\u003c/p>\n\u003cp>One of the customers said that if the Big Valley Market were to close, he would have to drive 52 miles east to get milk and other necessities in Alturas. Another customer said she’d have to drive at least 19 miles to get fresh fruit in Fall River Mills.\u003c/p>\n\u003cp>They said that the Babcocks operate a hay business to generate outside income and cater weddings, funerals and hospital events.\u003c/p>\n\u003cp>“We are trying to sustain our business and make a place for the people in the valley so they don’t have to drive back and forth long distances,” Tim Babcock said. “They can’t even afford gas.”\u003c/p>\n\u003cp>Kathlin Meyer, 73, said she visits the Big Valley Market at least three times a week. It’s the place where she feels most like part of a community, she said, after her move from Fortuna in 2006.\u003c/p>\n\u003cp>Like Tammy Babcock, Meyer is a cancer survivor. Last year, during Meyer’s chemotherapy, the Big Valley Market delivered food to her house.\u003c/p>\n\u003cfigure id=\"attachment_11975709\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11975709\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-14-800x533.jpeg\" alt=\"Blue sky above with a small white building with a sign in front\" width=\"800\" height=\"533\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-14-800x533.jpeg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-14-1020x680.jpeg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-14-160x107.jpeg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-14-1536x1024.jpeg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-14-1920x1280.jpeg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-14.jpeg 2000w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The Big Valley Wellness Center off of Lassen State Highway in Lassen County on Jan. 30, 2024. \u003ccite>(Photo by Miguel Gutierrez Jr./CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“If we close, people have to cross over a mountain, and in the winter, the road is covered with ice and snow,” Tammy Babcock said. “We have to help take care of our people, our senior citizens.”\u003c/p>\n\u003cp>Tim Babcock added that the Big Valley Market would have to close if the electric bills continue to increase. Tammy Babcock then recited how much they have paid in recent months, holding a list of the store’s electric payments.\u003c/p>\n\u003cp>In January, they paid nearly $3,000 toward the store’s PG&E bill. They made two payments because they couldn’t afford the entire amount immediately. In December, the Babcocks paid nearly $3,000. In November, it was nearly $4,000.\u003c/p>\n\u003cp>With the approved rate hike this year, the Babcocks expect to pay more than $40,000.\u003c/p>\n\u003ch2>Getting regulators’ permission\u003c/h2>\n\u003cp>Republican state Sen. Brian Dahle, who is from Bieber, told CalMatters recently his office receives many calls from people complaining about electric bills and that the state should hold utilities accountable.\u003c/p>\n\u003cp>PG&E would not make an official available to answer CalMatters’ other questions about the rate hikes but sent a written statement.\u003c/p>\n\u003cp>“Energy rates were adjusted for all customers to fund investments in the coming years,” the utility said, “to pay for permanent wildfire risk reduction, critical gas and electric safety and reliability work and capacity upgrades to support new business connections and California’s bold clean energy goals.”\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" src=\"https://e.infogram.com/02dc6fe3-e1d4-4295-909d-90fbce9b1d23?parent_url=https%3A%2F%2Fcalmatters.org%2Fcalifornia-divide%2F2024%2F02%2Futility-rate-hikes-california%2F&src=embed#async_embed\" data-id=\"02dc6fe3-e1d4-4295-909d-90fbce9b1d23\" data-type=\"interactive\" data-title=\"Average Residential Electric Rate Changes\" data-processed=\"1\" id=\"ig-2ccec01c-6c4b-8fb8-552e-04f1f13c7d7a\" style=\"border: none; width: 780px; height: 744px;\" scrolling=\"no\" frameborder=\"0\" allowfullscreen title=\"Average Residential Electric Rate Changes\" width=\"100%\" height=\"500\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>Like the Big Valley Market, medium-sized business customers will pay an average of 17% more this year, PG&E said, while small businesses will pay 21% more, agricultural businesses will pay 19% more and large businesses will have a 3.5% increase.\u003c/p>\n\u003cp>“PG&E is committed to providing ways for its business customers to save energy and money and has a variety of programs and tools available to find the best rate and to save money on their energy bills,” PG&E said. It listed a dozen programs, including monthly “budget billing,” loans to replace equipment, and “economic development rates” for some businesses that are 12% to 25% less.\u003c/p>\n\u003cp>But PG&E also is seeking another overall rate increase for this year. In June, PG&E requested rate hikes to reimburse the utility $688 million for wildfire safety work it had completed.\u003c/p>\n\u003cp>Earlier this month, state regulators issued a counter-proposal allowing the utility giant to collect $516 million from customers. A typical residential customer’s bill would go up $4 to $6 a month during the first year, although the lowest-income customers would pay $3 or $4, according to the commission’s proposal.\u003c/p>\n\u003cfigure id=\"attachment_11975703\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11975703\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-01-800x533.jpeg\" alt=\"A group of men gather for lunch at Big Valley Market\" width=\"800\" height=\"533\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-01-800x533.jpeg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-01-1020x680.jpeg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-01-160x107.jpeg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-01-1536x1024.jpeg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-01-1920x1280.jpeg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-01.jpeg 2000w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A small group gathers for lunch at Big Valley Market on Jan. 30. 2024. The market serves as the main grocer, restaurant and community gathering space for the town of Bieber. \u003ccite>(Miguel Gutierrez Jr./CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Mark Toney, executive director of the consumer group the Utility Reform Network (TURN), noted that if this relief is approved, the utilities would immediately start collecting it.\u003c/p>\n\u003cp>“PG&E shouldn’t automatically be getting this money without a field inspection to make sure they did the right work in the right locations with the right result, and they certainly should not be getting advance payment,” he said.\u003c/p>\n\u003cp>The commission is scheduled to vote on that on March 7.\u003c/p>\n\u003ch2>California lawmakers’ objections\u003c/h2>\n\u003cp>Gov. Gavin Newsom appoints, and the state Senate confirms all \u003ca href=\"https://www.cpuc.ca.gov/about-cpuc/commissioners\">five members\u003c/a> of the Public Utilities Commission, where they sit for staggered six-year terms.\u003c/p>\n\u003cp>Earlier this month, Republican lawmakers introduced \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240AB2205\">a bill\u003c/a> that would force state regulators to cut electricity rates across the board by at least 30%.\u003c/p>\n\u003cp>Assemblymember Joe Patterson, the Republican from Rocklin who introduced the bill, noted existing law gives state regulators authority to fix utility rates and charges at a “just and reasonable” price.\u003c/p>\n\u003cp>“I went to the CPUC website, and I looked at what their mission statement said, and, honestly, they don’t even list affordability as their goal,” he said. “How is that possible? I am not saying they don’t think of it when discussing issues, but it should be their priority.”\u003c/p>\n\u003cp>Lawmakers from both parties, meanwhile, are contesting a separate proposal from the state’s three major investor-owned utilities that would levy fixed rates on residential customers based on their income.\u003c/p>\n\u003cfigure id=\"attachment_11975708\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11975708\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/012822-CPUC-PUBLIC-UTILITIES-COMMISSION-MHN-CM-13-800x533.jpeg\" alt=\"A sign for the The California Public Utilities Commission office\" width=\"800\" height=\"533\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/012822-CPUC-PUBLIC-UTILITIES-COMMISSION-MHN-CM-13-800x533.jpeg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/012822-CPUC-PUBLIC-UTILITIES-COMMISSION-MHN-CM-13-1020x680.jpeg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/012822-CPUC-PUBLIC-UTILITIES-COMMISSION-MHN-CM-13-160x107.jpeg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/012822-CPUC-PUBLIC-UTILITIES-COMMISSION-MHN-CM-13-1536x1024.jpeg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/012822-CPUC-PUBLIC-UTILITIES-COMMISSION-MHN-CM-13-1920x1280.jpeg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/012822-CPUC-PUBLIC-UTILITIES-COMMISSION-MHN-CM-13.jpeg 2000w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The California Public Utilities Commission offices at the Edmund G. Pat Brown building in San Francisco on Jan. 28, 2022. \u003ccite>(Martin do Nascimento)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>A \u003ca href=\"https://www.pgecurrents.com/articles/3700-pg-e-submits-proposal-lower-electric-bills-low-income-customers-provide-bill-transparency-stability-advance-clean-energy-goals\">monthly fixed charge\u003c/a> for PG&E’s low-income customers, for instance, would be as low as $15, the utility said, and no more than $30, while moderate-income customers would pay about $51 and customers in the top 25% of earners would pay a fixed $92.\u003c/p>\n\u003cp>Sen. Scott Wiener, a Democrat from San Francisco, said the utilities’ proposal would place an unacceptable burden on middle-class Californians while removing incentives to conserve energy.\u003c/p>\n\u003cp>“Californians already pay some of the highest electric bills in the nation and should not be forced to arbitrarily pay more to cover for a private utility’s poor business decisions,” Wiener said in an email.\u003c/p>\n\u003cp>Justin Ong, chief policy advisor at the commission’s Public Advocate’s office, said the average monthly rate for PG&E customers is higher than all other utilities in the state due to the rate hike approved in November.\u003c/p>\n\u003cp>“We’re still really strong supporters of the fixed charge because it’s one of the only ways to reduce rates,” Ong told CalMatters.\u003c/p>\n\u003cp>The commissioners who approved the PG&E rate hikes in November will decide on the fixed charge proposal in July. If that plan is authorized, it would be implemented in 2026, Ong said.\u003c/p>\n\u003ch2>‘We want to keep rural America alive’\u003c/h2>\n\u003cp>A few blocks away from the Big Valley Market, Williams Wells, 55, picked up restaurant food for his mother, whose heart problems prevent her from taking care of herself. Wells said he moved to Beiber from Sacramento to help his 78-year-old mother, but that has become extraordinarily expensive. The breathing machine she needs has been plugged in 24 hours a day for the past six years, he said.\u003c/p>\n\u003cp>“My mom only receives $400 from Social Security, and I work three jobs to be able to take care of her,” Wells said. “I sleep with no heat, and we still pay over $300, and we have seen it go over $700. If it keeps going up, we’d probably be homeless.”\u003c/p>\n\u003cfigure id=\"attachment_11975734\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11975734\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-35-800x533.jpeg\" alt=\"A man sits indoors near a sign.\" width=\"800\" height=\"533\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-35-800x533.jpeg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-35-1020x680.jpeg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-35-160x107.jpeg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-35-1536x1024.jpeg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-35-1920x1280.jpeg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-35.jpeg 2000w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">William Wells at the Old Mill Grill in Bieber on Jan. 30, 2024. \u003ccite>(Miguel Gutierrez Jr./CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Besides him, the streets in Bieber were empty. Many storefront windows were broken or boarded up. The town of 146 homes was quiet.\u003c/p>\n\u003cp>Except inside the Big Valley Market, Tammy Babcock was cutting pork into chops while her husband unpacked boxes and filled shelves.\u003c/p>\n\u003cp>They were preparing for a busy evening. A basketball game was scheduled at the Big Valley High School, a few blocks away. Whatever the Babcocks earned that night would likely go toward the next electricity bill, Tim Babcock said.\u003c/p>\n\u003cp>“We don’t want to move into the city; we are not that kind of people. But these energy rates ain’t helping, right?” said Tim Babcock.\u003c/p>\n\u003cp>“It’s a struggle, but we want to keep rural America alive.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n","blocks":[],"excerpt":"High electric bills consumed 65% of a rural grocery store’s profit last year. Owners say they may close the store because of PG&E rate hikes.","status":"publish","parent":0,"modified":1707948011,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":true,"iframeSrcs":["https://e.infogram.com/02dc6fe3-e1d4-4295-909d-90fbce9b1d23"],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":55,"wordCount":2121},"headData":{"title":"How One Rural Couple Is Keeping Their Business Alive Despite PG&E's Rate Hike | KQED","description":"High electric bills consumed 65% of a rural grocery store’s profit last year. Owners say they may close the store because of PG&E rate hikes.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"source":"Calmatters","sourceUrl":"https://calmatters.org/","sticky":false,"nprByline":"Justo Robles","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/11975688/how-one-rural-couple-is-keeping-their-business-alive-despite-pges-rate-hike","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>Twelve years ago, when Tammy and Tim Babcock saw businesses closing in rural northeast California and families moving to bigger cities, they purchased the Big Valley Market in Bieber to revitalize the dying town.\u003c/p>\n\u003cp>Since then, their grocery store has become crucial to the day-to-day lives of residents in the surrounding communities, especially to the 200 or so people living in Bieber, about 250 miles north of Sacramento.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘If we close, people have to cross over a mountain, and in the winter the road is covered with ice and snow. We have to help take care of our people, our senior citizens.’ ","name":"pullquote","attributes":{"named":{"size":"medium","align":"right","citation":"Tammy Babcock, co-owner, Big Valley Market in Bieber","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>But the store is struggling to survive. Tammy and Tim Babcock blame recent rate increases in their electric bill.\u003c/p>\n\u003cp>In 2023, the Babcocks paid Pacific Gas & Electric nearly $40,000 for electricity — about two-thirds of the store’s annual profit, Tammy Babcock said. This year, rates for businesses their size will grow by 17%, the utility said.\u003c/p>\n\u003cp>“I called PG&E, and I said, ‘Are you trying to put us out of business? Are you trying to kill small-town America?’” said Tammy Babcock, 62, as she stood in the store she works outside jobs to sustain.\u003c/p>\n\u003cfigure id=\"attachment_11975707\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11975707\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-07-800x533.jpeg\" alt=\"A view of a street down the middle with a few cars on it.\" width=\"800\" height=\"533\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-07-800x533.jpeg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-07-1020x680.jpeg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-07-160x107.jpeg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-07-1536x1024.jpeg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-07-1920x1280.jpeg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-07.jpeg 2000w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A view down Bridge St. in Bieber, Lassen County, on Jan. 30. 2024. \u003ccite>(Miguel Gutierrez Jr./CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>As major California utilities like PG&E seek higher energy rates this year — in part to pay for upgrades and safety improvements — business owners like the Babcocks said that it’s pushing already struggling businesses toward closure. If that happens to the Babcocks’ market, the surrounding neighborhoods and towns would suffer.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"aside","attributes":{"named":{"tag":"pge, electric-bills","label":"More Related Stories "},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>The California Public Utilities Commission, which regulates utilities, \u003ca href=\"https://calmatters.org/california-divide/2023/11/electric-rates-california/\">approved the latest rate hike in November\u003c/a>. At the time, the commission said it was to ensure that PG&E maintains a “safe and reliable energy system.” The rate hike, which took effect on Jan. 1, affected tens of thousands of residential and business customers.\u003c/p>\n\u003cp>For PG&E’s more than 764,000 business owner accounts, rates will rise this year by \u003ca href=\"https://www.cpuc.ca.gov/news-and-updates/all-news/cpuc-prioritizes-safety-reliability-and-affordability-in-pge-rate-case-2023\">17%–21%\u003c/a>, depending on the size and type of business.\u003c/p>\n\u003cp>Residential electric rates \u003ca href=\"https://www.publicadvocates.cpuc.ca.gov/-/media/cal-advocates-website/files/press-room/reports-and-analyses/240119-caladvocates-q4-2023-quarterly-rate-report.pdf\">have nearly doubled\u003c/a> in California over the last decade. About \u003ca href=\"https://www.publicadvocates.cpuc.ca.gov/-/media/cal-advocates-website/files/press-room/reports-and-analyses/240118-caladvocates-fixed-charge-overview-web.pdf\">1 in 5 customers, some 2.4 million, are behind in utility bills\u003c/a> by an average of $744, said the Public Advocates Office, the consumer arm of the utilities commission.\u003c/p>\n\u003ch2>Small town struggles with rate hikes\u003c/h2>\n\u003cp>In Bieber, which has very little industry, the median annual household income is about $46,000, according to the \u003ca href=\"https://www.census.gov/search-results.html?q=Bieber%2C+california&page=1&stateGeo=none&searchtype=web&cssp=SERP&_charset_=UTF-8\">U.S. census\u003c/a>.\u003c/p>\n\u003cp>The Babcocks’ market sits below the verdant Big Valley Mountains, which overlook four small towns: Nubieber, Bieber, Lookout and Adin. Fewer than 2,000 people live in this flat farmland.\u003c/p>\n\u003cp>The store is the main place to buy water, rice, bread and other necessities. The closest Walmart is in Susanville, more than 67 minutes away, and the closest Safeway is in Burney, about 44 minutes away.\u003c/p>\n\u003cfigure id=\"attachment_11975737\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11975737\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-16-800x533.jpeg\" alt=\"A woman in a purple shirt and a black apron stands in a room with produce in the background\" width=\"800\" height=\"533\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-16-800x533.jpeg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-16-1020x680.jpeg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-16-160x107.jpeg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-16-1536x1024.jpeg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-16-1920x1280.jpeg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-16.jpeg 2000w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">Tammy Babcock is co-owner of the Big Valley Market in Bieber. The store serves as the main grocer, restaurant and community space for the unincorporated town of Bieber in Lassen County. \u003ccite>(Miguel Gutierrez Jr./CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In addition to selling groceries, the Babcocks also serve ready-made meals at two tables.\u003c/p>\n\u003cp>Just before noon in January, six people walked into the Big Valley store and Tim Babcock seated them as his wife went back and forth to the kitchen, serving them tacos.\u003c/p>\n\u003cp>The regulars, who have known each other for years, watched Fox News on the store TV and discussed community issues.\u003c/p>\n\u003cp>One of the customers said that if the Big Valley Market were to close, he would have to drive 52 miles east to get milk and other necessities in Alturas. Another customer said she’d have to drive at least 19 miles to get fresh fruit in Fall River Mills.\u003c/p>\n\u003cp>They said that the Babcocks operate a hay business to generate outside income and cater weddings, funerals and hospital events.\u003c/p>\n\u003cp>“We are trying to sustain our business and make a place for the people in the valley so they don’t have to drive back and forth long distances,” Tim Babcock said. “They can’t even afford gas.”\u003c/p>\n\u003cp>Kathlin Meyer, 73, said she visits the Big Valley Market at least three times a week. It’s the place where she feels most like part of a community, she said, after her move from Fortuna in 2006.\u003c/p>\n\u003cp>Like Tammy Babcock, Meyer is a cancer survivor. Last year, during Meyer’s chemotherapy, the Big Valley Market delivered food to her house.\u003c/p>\n\u003cfigure id=\"attachment_11975709\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11975709\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-14-800x533.jpeg\" alt=\"Blue sky above with a small white building with a sign in front\" width=\"800\" height=\"533\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-14-800x533.jpeg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-14-1020x680.jpeg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-14-160x107.jpeg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-14-1536x1024.jpeg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-14-1920x1280.jpeg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-14.jpeg 2000w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The Big Valley Wellness Center off of Lassen State Highway in Lassen County on Jan. 30, 2024. \u003ccite>(Photo by Miguel Gutierrez Jr./CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“If we close, people have to cross over a mountain, and in the winter, the road is covered with ice and snow,” Tammy Babcock said. “We have to help take care of our people, our senior citizens.”\u003c/p>\n\u003cp>Tim Babcock added that the Big Valley Market would have to close if the electric bills continue to increase. Tammy Babcock then recited how much they have paid in recent months, holding a list of the store’s electric payments.\u003c/p>\n\u003cp>In January, they paid nearly $3,000 toward the store’s PG&E bill. They made two payments because they couldn’t afford the entire amount immediately. In December, the Babcocks paid nearly $3,000. In November, it was nearly $4,000.\u003c/p>\n\u003cp>With the approved rate hike this year, the Babcocks expect to pay more than $40,000.\u003c/p>\n\u003ch2>Getting regulators’ permission\u003c/h2>\n\u003cp>Republican state Sen. Brian Dahle, who is from Bieber, told CalMatters recently his office receives many calls from people complaining about electric bills and that the state should hold utilities accountable.\u003c/p>\n\u003cp>PG&E would not make an official available to answer CalMatters’ other questions about the rate hikes but sent a written statement.\u003c/p>\n\u003cp>“Energy rates were adjusted for all customers to fund investments in the coming years,” the utility said, “to pay for permanent wildfire risk reduction, critical gas and electric safety and reliability work and capacity upgrades to support new business connections and California’s bold clean energy goals.”\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" src=\"https://e.infogram.com/02dc6fe3-e1d4-4295-909d-90fbce9b1d23?parent_url=https%3A%2F%2Fcalmatters.org%2Fcalifornia-divide%2F2024%2F02%2Futility-rate-hikes-california%2F&src=embed#async_embed\" data-id=\"02dc6fe3-e1d4-4295-909d-90fbce9b1d23\" data-type=\"interactive\" data-title=\"Average Residential Electric Rate Changes\" data-processed=\"1\" id=\"ig-2ccec01c-6c4b-8fb8-552e-04f1f13c7d7a\" style=\"border: none; width: 780px; height: 744px;\" scrolling=\"no\" frameborder=\"0\" allowfullscreen title=\"Average Residential Electric Rate Changes\" width=\"100%\" height=\"500\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>Like the Big Valley Market, medium-sized business customers will pay an average of 17% more this year, PG&E said, while small businesses will pay 21% more, agricultural businesses will pay 19% more and large businesses will have a 3.5% increase.\u003c/p>\n\u003cp>“PG&E is committed to providing ways for its business customers to save energy and money and has a variety of programs and tools available to find the best rate and to save money on their energy bills,” PG&E said. It listed a dozen programs, including monthly “budget billing,” loans to replace equipment, and “economic development rates” for some businesses that are 12% to 25% less.\u003c/p>\n\u003cp>But PG&E also is seeking another overall rate increase for this year. In June, PG&E requested rate hikes to reimburse the utility $688 million for wildfire safety work it had completed.\u003c/p>\n\u003cp>Earlier this month, state regulators issued a counter-proposal allowing the utility giant to collect $516 million from customers. A typical residential customer’s bill would go up $4 to $6 a month during the first year, although the lowest-income customers would pay $3 or $4, according to the commission’s proposal.\u003c/p>\n\u003cfigure id=\"attachment_11975703\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11975703\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-01-800x533.jpeg\" alt=\"A group of men gather for lunch at Big Valley Market\" width=\"800\" height=\"533\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-01-800x533.jpeg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-01-1020x680.jpeg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-01-160x107.jpeg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-01-1536x1024.jpeg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-01-1920x1280.jpeg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-01.jpeg 2000w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A small group gathers for lunch at Big Valley Market on Jan. 30. 2024. The market serves as the main grocer, restaurant and community gathering space for the town of Bieber. \u003ccite>(Miguel Gutierrez Jr./CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Mark Toney, executive director of the consumer group the Utility Reform Network (TURN), noted that if this relief is approved, the utilities would immediately start collecting it.\u003c/p>\n\u003cp>“PG&E shouldn’t automatically be getting this money without a field inspection to make sure they did the right work in the right locations with the right result, and they certainly should not be getting advance payment,” he said.\u003c/p>\n\u003cp>The commission is scheduled to vote on that on March 7.\u003c/p>\n\u003ch2>California lawmakers’ objections\u003c/h2>\n\u003cp>Gov. Gavin Newsom appoints, and the state Senate confirms all \u003ca href=\"https://www.cpuc.ca.gov/about-cpuc/commissioners\">five members\u003c/a> of the Public Utilities Commission, where they sit for staggered six-year terms.\u003c/p>\n\u003cp>Earlier this month, Republican lawmakers introduced \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202320240AB2205\">a bill\u003c/a> that would force state regulators to cut electricity rates across the board by at least 30%.\u003c/p>\n\u003cp>Assemblymember Joe Patterson, the Republican from Rocklin who introduced the bill, noted existing law gives state regulators authority to fix utility rates and charges at a “just and reasonable” price.\u003c/p>\n\u003cp>“I went to the CPUC website, and I looked at what their mission statement said, and, honestly, they don’t even list affordability as their goal,” he said. “How is that possible? I am not saying they don’t think of it when discussing issues, but it should be their priority.”\u003c/p>\n\u003cp>Lawmakers from both parties, meanwhile, are contesting a separate proposal from the state’s three major investor-owned utilities that would levy fixed rates on residential customers based on their income.\u003c/p>\n\u003cfigure id=\"attachment_11975708\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11975708\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/012822-CPUC-PUBLIC-UTILITIES-COMMISSION-MHN-CM-13-800x533.jpeg\" alt=\"A sign for the The California Public Utilities Commission office\" width=\"800\" height=\"533\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/012822-CPUC-PUBLIC-UTILITIES-COMMISSION-MHN-CM-13-800x533.jpeg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/012822-CPUC-PUBLIC-UTILITIES-COMMISSION-MHN-CM-13-1020x680.jpeg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/012822-CPUC-PUBLIC-UTILITIES-COMMISSION-MHN-CM-13-160x107.jpeg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/012822-CPUC-PUBLIC-UTILITIES-COMMISSION-MHN-CM-13-1536x1024.jpeg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/012822-CPUC-PUBLIC-UTILITIES-COMMISSION-MHN-CM-13-1920x1280.jpeg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/012822-CPUC-PUBLIC-UTILITIES-COMMISSION-MHN-CM-13.jpeg 2000w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">The California Public Utilities Commission offices at the Edmund G. Pat Brown building in San Francisco on Jan. 28, 2022. \u003ccite>(Martin do Nascimento)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>A \u003ca href=\"https://www.pgecurrents.com/articles/3700-pg-e-submits-proposal-lower-electric-bills-low-income-customers-provide-bill-transparency-stability-advance-clean-energy-goals\">monthly fixed charge\u003c/a> for PG&E’s low-income customers, for instance, would be as low as $15, the utility said, and no more than $30, while moderate-income customers would pay about $51 and customers in the top 25% of earners would pay a fixed $92.\u003c/p>\n\u003cp>Sen. Scott Wiener, a Democrat from San Francisco, said the utilities’ proposal would place an unacceptable burden on middle-class Californians while removing incentives to conserve energy.\u003c/p>\n\u003cp>“Californians already pay some of the highest electric bills in the nation and should not be forced to arbitrarily pay more to cover for a private utility’s poor business decisions,” Wiener said in an email.\u003c/p>\n\u003cp>Justin Ong, chief policy advisor at the commission’s Public Advocate’s office, said the average monthly rate for PG&E customers is higher than all other utilities in the state due to the rate hike approved in November.\u003c/p>\n\u003cp>“We’re still really strong supporters of the fixed charge because it’s one of the only ways to reduce rates,” Ong told CalMatters.\u003c/p>\n\u003cp>The commissioners who approved the PG&E rate hikes in November will decide on the fixed charge proposal in July. If that plan is authorized, it would be implemented in 2026, Ong said.\u003c/p>\n\u003ch2>‘We want to keep rural America alive’\u003c/h2>\n\u003cp>A few blocks away from the Big Valley Market, Williams Wells, 55, picked up restaurant food for his mother, whose heart problems prevent her from taking care of herself. Wells said he moved to Beiber from Sacramento to help his 78-year-old mother, but that has become extraordinarily expensive. The breathing machine she needs has been plugged in 24 hours a day for the past six years, he said.\u003c/p>\n\u003cp>“My mom only receives $400 from Social Security, and I work three jobs to be able to take care of her,” Wells said. “I sleep with no heat, and we still pay over $300, and we have seen it go over $700. If it keeps going up, we’d probably be homeless.”\u003c/p>\n\u003cfigure id=\"attachment_11975734\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11975734\" src=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-35-800x533.jpeg\" alt=\"A man sits indoors near a sign.\" width=\"800\" height=\"533\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-35-800x533.jpeg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-35-1020x680.jpeg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-35-160x107.jpeg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-35-1536x1024.jpeg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-35-1920x1280.jpeg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2024/02/013024-Bieber-Electric-Rates-MG-CM-35.jpeg 2000w\" sizes=\"(max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">William Wells at the Old Mill Grill in Bieber on Jan. 30, 2024. \u003ccite>(Miguel Gutierrez Jr./CalMatters)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Besides him, the streets in Bieber were empty. Many storefront windows were broken or boarded up. The town of 146 homes was quiet.\u003c/p>\n\u003cp>Except inside the Big Valley Market, Tammy Babcock was cutting pork into chops while her husband unpacked boxes and filled shelves.\u003c/p>\n\u003cp>They were preparing for a busy evening. A basketball game was scheduled at the Big Valley High School, a few blocks away. Whatever the Babcocks earned that night would likely go toward the next electricity bill, Tim Babcock said.\u003c/p>\n\u003cp>“We don’t want to move into the city; we are not that kind of people. But these energy rates ain’t helping, right?” said Tim Babcock.\u003c/p>\n\u003cp>“It’s a struggle, but we want to keep rural America alive.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"floatright"},"numeric":["floatright"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11975688/how-one-rural-couple-is-keeping-their-business-alive-despite-pges-rate-hike","authors":["byline_news_11975688"],"categories":["news_31795","news_1758","news_8","news_356"],"tags":["news_27626","news_140","news_33534"],"featImg":"news_11975729","label":"source_news_11975688"},"news_11974216":{"type":"posts","id":"news_11974216","meta":{"index":"posts_1591205157","site":"news","id":"11974216","score":null,"sort":[1706702442000]},"guestAuthors":[],"slug":"could-outdoor-drinking-revitalize-californias-economy","title":"Could Outdoor Drinking Revitalize California's Economy?","publishDate":1706702442,"format":"standard","headTitle":"Could Outdoor Drinking Revitalize California’s Economy? | KQED","labelTerm":{},"content":"\u003cp>It may not be long until Californians can order a beer at a bar to go, walk it straight out the door and drink it outside.\u003c/p>\n\u003cp>Democratic State Sen. \u003ca href=\"https://calmatters.org/legislator-tracker/scott-wiener-1970/\">Scott Wiener\u003c/a> wants to allow California cities and counties to designate “entertainment zones” where bars and restaurants could serve alcoholic drinks that people can consume on public streets and sidewalks. If \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB969\">Senate Bill 969\u003c/a> is passed, Californians age 21 and over can raise a toast in the glorious outdoors by Jan. 1, 2025.\u003c/p>\n\u003cp>[pullquote align=\"right\" size=\"medium\" citation=\"State Sen. Scott Wiener\"]‘Getting people back out in the streets is key to the economic recovery of cities across California. By creating Entertainment Zones, we’re giving people a reason to go back to areas where recovery has been slow while creating a vital new revenue stream for bars and restaurants.’[/pullquote]When \u003ca href=\"https://sd11.senate.ca.gov/news/20240126-senator-wiener-introduces-bill-activate-downtown-spaces-boost-local-restaurants-bars\">Wiener announced the measure on Friday\u003c/a>, he said it would help revitalize downtowns where foot traffic has plummeted since the pandemic, including his home of San Francisco. Cities will be able to tailor these zones to their needs, allowing bars and restaurants to sell to-go drinks similar to what vendors do at festivals.\u003c/p>\n\u003cp>Wiener, in a statement: “Getting people back out in the streets is key to the economic recovery of cities across California. By creating Entertainment Zones, we’re giving people a reason to go back to areas where recovery has been slow while creating a vital new revenue stream for bars and restaurants.”\u003c/p>\n\u003cp>Wiener also cited research from the University of Toronto that tracked cell phone activity to \u003ca href=\"https://downtownrecovery.com/charts/rankings?ac_cid=DM906183&ac_bid=893685226\">determine how well cities have rebounded\u003c/a> since the pandemic. In October, it found that San José had recovered 96% of visitors to its downtown area, surpassing Los Angeles at 83%, San Francisco at 67% and Sacramento at 66%.\u003c/p>\n\u003cp>Hoping to continue that momentum, the cities of San José and San Francisco are included as sponsors of the bill, with San José Mayor Matt Mahan saying it will “make it easier for local businesses to host block parties, wine walks” and other events “to help drive the vibrant future of our downtown.”\u003c/p>\n\u003cp>The proposal is likely to get pushback from neighborhood groups worried about public nuisances and noise, as well as organizations concerned with alcohol-related health impacts and harm.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Last year, Wiener won a similar law limited to only San Francisco. Groups, including the California Alcohol Policy Alliance and California Council on Alcohol Problems, spoke out against the measure, known then as Senate Bill 76. An organization known as Alcohol Justice said the measure would make it easier for underaged people to “obtain alcohol within these entertainment zones” and “throw open the door to a litany of potential harms, liability entanglements, and unwanted and uncontrollable neighborhood disruptions.”\u003c/p>\n\u003cp>These organizations did not immediately respond to requests for comment.\u003c/p>\n\u003cp>The new bill has not been referred to a committee yet, but a spokesperson for Wiener’s office said the Senate committee on governmental organization will likely consider it, similar to how it reviewed the 2023 measure. That hearing is expected to take place in March, when the public will have a chance to comment.\u003c/p>\n\u003cp>\u003c/p>\n","blocks":[],"excerpt":"If Senate Bill 969 is passed, Californians age 21 and over can raise a toast in the glorious outdoors by Jan. 1, 2025.","status":"publish","parent":0,"modified":1706724038,"stats":{"hasAudio":false,"hasVideo":false,"hasChartOrMap":false,"iframeSrcs":[],"hasGoogleForm":false,"hasGallery":false,"hasHearkenModule":false,"hasPolis":false,"paragraphCount":12,"wordCount":548},"headData":{"title":"Could Outdoor Drinking Revitalize California's Economy? | KQED","description":"If Senate Bill 969 is passed, Californians age 21 and over can raise a toast in the glorious outdoors by Jan. 1, 2025.","ogTitle":"","ogDescription":"","ogImgId":"","twTitle":"","twDescription":"","twImgId":""},"source":"CalMatters","sourceUrl":"https://calmatters.org/","sticky":false,"nprByline":"\u003ca href=\"https://calmatters.org/author/lynn-la/\">Lynn La\u003c/a>","excludeFromSiteSearch":"Include","showOnAuthorArchivePages":"No","articleAge":"0","path":"/news/11974216/could-outdoor-drinking-revitalize-californias-economy","audioTrackLength":null,"parsedContent":[{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003cp>It may not be long until Californians can order a beer at a bar to go, walk it straight out the door and drink it outside.\u003c/p>\n\u003cp>Democratic State Sen. \u003ca href=\"https://calmatters.org/legislator-tracker/scott-wiener-1970/\">Scott Wiener\u003c/a> wants to allow California cities and counties to designate “entertainment zones” where bars and restaurants could serve alcoholic drinks that people can consume on public streets and sidewalks. If \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB969\">Senate Bill 969\u003c/a> is passed, Californians age 21 and over can raise a toast in the glorious outdoors by Jan. 1, 2025.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"‘Getting people back out in the streets is key to the economic recovery of cities across California. By creating Entertainment Zones, we’re giving people a reason to go back to areas where recovery has been slow while creating a vital new revenue stream for bars and restaurants.’","name":"pullquote","attributes":{"named":{"align":"right","size":"medium","citation":"State Sen. Scott Wiener","label":""},"numeric":[]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>When \u003ca href=\"https://sd11.senate.ca.gov/news/20240126-senator-wiener-introduces-bill-activate-downtown-spaces-boost-local-restaurants-bars\">Wiener announced the measure on Friday\u003c/a>, he said it would help revitalize downtowns where foot traffic has plummeted since the pandemic, including his home of San Francisco. Cities will be able to tailor these zones to their needs, allowing bars and restaurants to sell to-go drinks similar to what vendors do at festivals.\u003c/p>\n\u003cp>Wiener, in a statement: “Getting people back out in the streets is key to the economic recovery of cities across California. By creating Entertainment Zones, we’re giving people a reason to go back to areas where recovery has been slow while creating a vital new revenue stream for bars and restaurants.”\u003c/p>\n\u003cp>Wiener also cited research from the University of Toronto that tracked cell phone activity to \u003ca href=\"https://downtownrecovery.com/charts/rankings?ac_cid=DM906183&ac_bid=893685226\">determine how well cities have rebounded\u003c/a> since the pandemic. In October, it found that San José had recovered 96% of visitors to its downtown area, surpassing Los Angeles at 83%, San Francisco at 67% and Sacramento at 66%.\u003c/p>\n\u003cp>Hoping to continue that momentum, the cities of San José and San Francisco are included as sponsors of the bill, with San José Mayor Matt Mahan saying it will “make it easier for local businesses to host block parties, wine walks” and other events “to help drive the vibrant future of our downtown.”\u003c/p>\n\u003cp>The proposal is likely to get pushback from neighborhood groups worried about public nuisances and noise, as well as organizations concerned with alcohol-related health impacts and harm.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>","attributes":{"named":{},"numeric":[]}},{"type":"component","content":"","name":"ad","attributes":{"named":{"label":"fullwidth"},"numeric":["fullwidth"]}},{"type":"contentString","content":"\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Last year, Wiener won a similar law limited to only San Francisco. Groups, including the California Alcohol Policy Alliance and California Council on Alcohol Problems, spoke out against the measure, known then as Senate Bill 76. An organization known as Alcohol Justice said the measure would make it easier for underaged people to “obtain alcohol within these entertainment zones” and “throw open the door to a litany of potential harms, liability entanglements, and unwanted and uncontrollable neighborhood disruptions.”\u003c/p>\n\u003cp>These organizations did not immediately respond to requests for comment.\u003c/p>\n\u003cp>The new bill has not been referred to a committee yet, but a spokesperson for Wiener’s office said the Senate committee on governmental organization will likely consider it, similar to how it reviewed the 2023 measure. That hearing is expected to take place in March, when the public will have a chance to comment.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>","attributes":{"named":{},"numeric":[]}}],"link":"/news/11974216/could-outdoor-drinking-revitalize-californias-economy","authors":["byline_news_11974216"],"categories":["news_31795","news_1758","news_8"],"tags":["news_21212","news_18538","news_33779","news_18545"],"featImg":"news_11974250","label":"source_news_11974216"}},"programsReducer":{"possible":{"id":"possible","title":"Possible","info":"Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. 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Because everyone needs a little help being human.\u003cbr />\u003cbr />\u003ca href=\"https://www.npr.org/podcasts/510312/codeswitch\">\u003cem>Code Switch\u003c/em> offical site and podcast\u003c/a>\u003cbr />\u003ca href=\"https://www.npr.org/lifekit\">\u003cem>Life Kit\u003c/em> offical site and podcast\u003c/a>\u003cbr />","airtime":"SUN 9pm-10pm","imageSrc":"https://cdn.kqed.org/wp-content/uploads/2021/12/CodeSwitchLifeKit_StationGraphics_300x300EmailGraphic.png","meta":{"site":"radio","source":"npr"},"link":"/radio/program/code-switch-life-kit","subscribe":{"apple":"https://podcasts.apple.com/podcast/1112190608?mt=2&at=11l79Y&ct=nprdirectory","google":"https://podcasts.google.com/feed/aHR0cHM6Ly93d3cubnByLm9yZy9yc3MvcG9kY2FzdC5waHA_aWQ9NTEwMzEy","spotify":"https://open.spotify.com/show/3bExJ9JQpkwNhoHvaIIuyV","rss":"https://feeds.npr.org/510312/podcast.xml"}},"commonwealth-club":{"id":"commonwealth-club","title":"Commonwealth Club of California Podcast","info":"The Commonwealth Club of California is the nation's oldest and largest public affairs forum. 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