Operations

California lawmakers approve bill empowering fast food workers

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August 31, 2022

Fast food staff in California now have more power and protections due to a bill lawmakers passed this week despite opposition from restaurant owners.

The landmark legislation creates a 10-member Fast Food Council, featuring workers' delegates, restaurant brand representatives as well as two state leaders. The council will establish minimum standards when it comes to hours, wages and working conditions, according to a KCRA report. An amendment to the bill caps any minimum wage increase at fast food brands with more than 100 locations at $22 an hour in 2023. The current minimum is $15.50 an hour.

The bill now goes to California Governor Gavin Newsom for passage or a veto, according to a Wall Street Journal report, which noted the governor has not made any statement regarding the legislation and the deadline for his action is Sept. 30.

Since the legislation approval the bill has been heralded as a landmark effort.

"We made history today," Service Employees International Union President Mary Kay Henry told KCRA. "This legislation is a huge step forward for workers in California and all across the country."

Those opposed called it a steppingstone toward union creation and that it will increase the costs of products at fast food restaurants.

One industry group, the National Restaurant Association, issued a response to the bill Tuesday stating the legislation will hurt small business, employees and customers, noting the governor's department of finance reported the bill will increase costs.

"For restaurant operators, the FAST Act threatens businesses already contending with a 16% increase in wholesale food prices and ongoing supply chain challenges. In fact, 45 percent of California's restaurant operators report that their business conditions are worse today than they were three months ago," Michelle Korsmo, president and CEO, National Restaurant Association, wrote in the statement

"Nine in 10 restaurants are small businesses that employ fewer than 50 people. This bill sends a clear message that the state legislature doesn't understand the importance of these employees to the small business owners operating not just franchise restaurants, but also bakeries, juice bars, pizzerias, delis, salad shops and so many other quick service establishments on which Californians rely. It's these local businesses that provide people first jobs, career opportunities, and support their communities. The FAST Act isn't going to achieve its objective of providing a better environment for the workforce, it's going to force the outcomes our communities don't want to see," Korsmo wrote.

Columbia Law School labor law expert Kate Andrias called it "one of the most significant pieces of employment legislation passed in a generation," according to the news report.