- California Gov. Newsom signs landmark bill that gives fast food workers a voice on wages.
- The FAST Recovery Act could raise the minimum wage for fast food workers to $22 an hour next year.
California Gov. Gavin Newsom signed the FAST Recovery Act, unprecedented legislation that gives fast food workers a say on hourly pay and working conditions, including giving them the power to raise the minimum wage next year to $22 an hour.
AB 257 , which Newsom signed on Labor Day, creates a 10-member council of fast food workers, franchisees, franchisors, advocates for fast food employees, and representatives from the governor's office. The council will establish minimum standards on wages, working hours, and other working conditions related to the health and safety of workers. The law applies to food chains with more than 100 locations, including Starbucks, Wendy's, Burger King, and McDonald's.
Newsom said in a video speech on Twitter that there are "sectors of our economy where we're falling a bit short, and one of those areas is fast food workers."
"I'm proud of the men and women of organized labor, particularly on Labor Day, for their extraordinary work over the course of decades to empower workers to give them voice and choice and to fight not just for wages but better working conditions," Newsom said.
The industry's trade organization, National Restaurant Association, and chains such as McDonald's, have denounced the bill. They maintain it will hurt small business owners, including fast food franchisees who own one or two restaurants.
"The expected higher wage mandates alone could raise costs for California quick service restaurants by $3 billion, and that cost will likely spread to struggling independent restaurants as well," Sean Kennedy, executive vice president for public affairs at the NRA, said in a statement released Monday.
"At a time when California restaurants are struggling with skyrocketing inflation in food prices and operating costs, this bill will push many owners closer than ever to shutting their doors in their communities," Kennedy said.
The FAST Recovery Act impacts about 550,000 fast-food workers in California. Many have fought for years for increases in the state's minimum wage, which is currently $15 an hour for employers with 26 or more employees.
Mary Kay Henry, the president of the Service Employees International Union President, said she expects fast-food workers battling McDonald's, Wendy's, and Burger King for fair wages in other states to ask their lawmakers to propose similar legislation like AB 257.
The union is already in talks with some legislators in other states, she added.
"We are in conversations in several other states, but because we're in the discussions stage, we aren't in a position yet to announce where. But as soon as the authors make commitments, we will be working with the fast food movements and legislators in those states to go public," Kay Henry said during a virtual press conference held Monday morning.