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On September 5, California Governor Gavin Newsom signed AB 257, the Fast Food Accountability and Standards Recovery Act, into law.
The new law authorizes the creation of the Fast Food Council comprised of representatives from labor and management to set minimum standards for workers in the industry, including for wages, conditions related to health and safety, security in the workplace, the right to take time off from work for protected purposes and protection from discrimination and harassment.
The law could boost the state's minimum wage for fast-food workers to $22 an hour in 2023.
The regulations will apply to California fast-food restaurants that are part of chains with more than 100 units nationwide. The new law is estimated to impact about 150 companies and 19,000 locations, according to Restaurant Business.
Opponents of the measure believe the new law may have negative consequences for individual franchise owners, many of whom are small business owners. Additionally, there is criticism that the measure will result in a 20% food tax on California consumers, empower an unelected council to set wages with no accountability to voters and singles out a specific industry.
The National Restaurant Association has warned that similar legislation may follow in New York, Illinois, Oregon and Washington.
ICSC worked with a coalition of major franchises and industry associations to oppose the legislation and will continue to monitor implementation and future attempts by labor to champion this issue in other states.