California Court Freezes Controversial Fast Food Minimum Wage Law

A California A court blocked a law that would have created a board to allow for increased growth. minimum wages Fast food workers were given the information until they signed against the measure.

Fast Food Accountability and Standards Recovery Act also known as FAST Recovery Act would establish You can find more information at “Fast Food Council” responsible for drafting “sectorwide minimum standards on wages, working hours, and other working conditions,” According to a summary The legislation. The Sacramento Superior Court granted a temporary stay to the law and agreed to stop enforcement until petition signatures were examined.

“Today’s Court decision protects the rights of over one million California voters who demanded their say on this law before bearing its burden,” Save Local Restaurants collected More than one million signatures were collected to place FAST Recovery Act on the statewide ballots for the 2024 election. statement. “We appreciate the Court upholding the state’s 100-year-old referendum process as well as the well-established legal precedent that ensures California voters are able to consider the laws passed by their legislature.”

This legislation will only be applicable to restaurants chains with more than 100 locations in the United States. However, a provision exists that allows franchises to operate a bakery. “produces for sale bread as a stand-alone menu item.” The legislation allows members of the Fast Food Council to raise minimum wages up to $22 an hour. This is a 40% increase over the $15.50 California minimum wage.

Governor Gavin Newsom, a Democratic-California legislator who signed the legislation in 2013, would be permitted to appoint eight out of the 10 Fast Food Council members. The powerful Service Employees International Union supported the law. asserts This statute will “increase corporate accountability” Across the entire industry.

A poll The Employment Policies Institute, a conservative think tank that studies labor economists, found that 83% opposed the FAST Recovery Bill; another survey According to the International Franchise Association, only 32% of Californians support this law. “All signs are telling legislators to reject this bill,” Matt Haller, International Franchise Association CEO, stated in a statement. “Voters don’t want it, consumers don’t want higher prices, and franchisees don’t want corporations being forced to take over their businesses.”

McDonald’s USA President Joe Erlinger, another opponent of the bill, previously contended that the law arbitrarily imposes “higher costs on one type of restaurant, while sparing another” It was said that “backroom politicking” The carveout is for restaurants that are connected to a bakery. “If you are a small business owner running two restaurants that are part of a national chain, like McDonald’s, you can be targeted by the bill,” He wrote it in a letter Denouncing the bill. “But if you own 20 restaurants that are not part of a large chain, the bill does not apply to you.”

After 30% of California’s restaurants were forced to close their doors due to the lockdown-induced recession (according the FAST Recovery Act), legal battles are raging over the FAST Recovery Act. data California State Senate. Newsom led the most severe lockdown in the country three years ago. This was just recently. reversed Many of his emergency orders were fulfilled.