California’s governor supports the law despite fast food industry resistance.
The Fast Food Recovery Act, enacted by California Governor Gavin Newsom, gives franchise workers more influence over salaries and working conditions. Fast food companies resisted.
The Fast Food Accountability and Norms Recovery Act would form a council to advise on workplace standards, discrimination, and harassment.
The council will also be responsible for establishing the Fast Food Accountability and Standards Recovery Act.
According to Newsom, the bill would provide “fast food employees a stronger voice and seat at the table” to ensure equitable remuneration and health and safety regulations.
One of the trade associations in the sector that voted against the motion was the International Franchise Association.
On the board of directors of this association are members from McDonald’s Corporation, Wendy’s Company, and Papa John’s International Inc.
International Franchise Association CEO Matthew Haller: “This legislation damages franchise owners and customers.” IFA estimates the revisions will hike restaurant bills by 20%.
Fast food workers in California make $16.21 per hour, or 85 cents on the dollar compared to other service workers.
AB 257 raises the minimum wage for chains with 100 or more sites to $22 per hour by 2020. As the first law of its sort in the US, it will be a model for future legislation.