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Newsom vetoes bill proposing unemployment for striking workers

October 1, 2023

By JOSH FRIEDMAN

California Gov. Gavin Newsom on Saturday vetoed a bill that would have made striking workers eligible for unemployment benefits.

Newsom noted in vetoing the bill that the debt in the state’s unemployment insurance fund is projected to be $20 billion by the end of the year. California is not collecting enough in taxes to support the Unemployment Insurance (UI) fund, Newsom stated in a note informing the state Senate of his veto.

“Any expansion of eligibility for UI benefits could increase California’s outstanding federal UI debt projected to be nearly $20 billion by the end of the year and could jeopardize California’s Benefit Cost Ratio add-on waiver application, significantly increasing taxes on employers,” Newsom wrote.“Furthermore, the state is responsible for the interest payments on the federal UI loan and to date has paid $362.7 million in interest with another $302 million due this month.

“Now is not the time to increase costs or incur this sizable debt.”

California’s unemployment fund is supported through a tax that businesses must pay on each worker. The tax only applies to the first $7,000 of workers’ wages, which is the lowest amount allowed under federal law.

Newsom vetoed the unemployment bill four days after Hollywood writers ended a strike that lasted nearly five months. Hollywood actors and Southern California hotel workers still have ongoing strikes. 

The bill, authored by Democratic state Sen. Anthony Portantino, showed Democratic lawmakers’ support for striking workers. Portantino said only two of the 56 strikes in California over the last decade have lasted more than two weeks. 


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One point for Gavin. 1000 points equals one attaboy. He doesn’t have enough time to earn one attaboy if he plans or run for President.


1

This was so typical of this guy. He raised the minimum wage for fast food workers to $20 claiming it only affects the workers in national chains. Guess what dumb…, we have a worker shortage in California and that will just make it worse because people will leave other jobs to make 20/hour to stand around at McD. Then everyone will complain about paying 12 for big mac.


25

Yep, my diet coke went up to $1.62 as soon as that wage went into effect. I gladly pay it.


Good for those workers, but I never buy food from that chain. It’s really, really bad for you. I’m 80 on my next birthday and you don’t live that long eating fast food. My $12 would rather buy chicken and some vegetables.


Not sure I’ve ever seen anyone stand around at McDonalds. They seem busy.


-14

You shouldn’t be drinking that stuff, more and more evidence of its harmful effects on health.


5

Such a slap in the face to those of us who sweat and destroy our bodies for similar wages. People wonder why their “new construction” is garbage these days smh :/


13

Please look at the big picture.. 20 per hour means that all mom pop restaur a nts now have to pay 20+ to be able to get the same people to work. That means all businesses that use entry level people (restaurants, gardeners, coffee shops, retail stores etc etc) are going to have to raise prices.


Technology e.g. robotics, have never been economically feasible for small business. At this moment thet are producing robotics for kitchen restaurants, yard maintenance, food serving etc for $20,000. Can work 365 days year, no sick days, no workman’s comp Insurance.

Do the math, we are at the point where technology will substantially replace the “entry level unskilled” job market.

Just another thing to remove from our teenagers as they try growing to become” responsible productive adults”


17