California Fast Food Minimum Wage Law Put on Hold

A California A court placed a temporary hold to a law that would have established a board that could allow for an increase in the number of members. minimum wages Fast food workers.

Fast Food Accountability and Standards Recovery Act also known as FAST Recovery Act would create A “Fast Food Council” responsible for drafting “sectorwide minimum standards on wages, working hours, and other working conditions,” According to a summary Three months ago, Governor Gavin Newsom (D–CA) signed the bill. The Sacramento Superior Court stopped the implementation of this law, which was scheduled to go into effect January 1. It also scheduled a hearing for January 13.

Save Local Restaurants is an advocacy organization that garnered There were more than one million signatures submitted to place FAST recovery Act on the state ballots in 2024, according to a press release that the court’s ruling upholds the California referendum process.

“Today’s decision by the Sacramento Superior Court protects the voices of over one million California voters who exercised their democratic right in asking to vote on a piece of legislation before bearing its burden,” According to the coalition. “This process has been preserved for more than 100 years and was in grave risk of being suppressed. While this pause is temporary, the impact is beyond just one piece of legislation and keeps intact for the time being California’s century-old referendum process.”

The legislation backed Service Employees International Union is the only one that applies to restaurants with more than 100 establishments in the United States. But, there is a carveout for chains that own a bakery. “produces for sale bread as a stand-alone menu item.” Members of the Fast Food Council could raise minimum wages by as much as $22 per hour. This would represent an increase of more than 40% over the $15.50 minimum that is already in effect in California.

Local Restaurants to Save contends FAST Recovery Act will place undue strain on businesses in the state, and would increase food prices. Many restaurants were forced by the FAST Recovery Act to pay this bill. close their doors following the state’s harsh lockdown measures.

A poll An analysis of labor economists by the Employment Policies Institute (a fiscally conservative think-tank) found that 83% of them oppose the FAST recovery Act. Strong majorities however agree that it would increase operating expenses for restaurants, raise food prices for customers, and result in the closure of some restaurants.

McDonald’s USA President Joe Erlinger, an opponent of the bill, previously argued that the law arbitrarily imposes “higher costs on one type of restaurant, while sparing another” It was postulated that “backroom politicking” This could explain why there is a carveout at restaurants that have 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 in a letter Denouncing this bill. “But if you own 20 restaurants that are not part of a large chain, the bill does not apply to you.”

Many top fast-food restaurants have announced plans to automate their restaurant operations. This is in response to persistent labor shortages and minimum wage increases that are affecting employers. McDonald’s recently created A Texas test restaurant where customers can use kiosks or a mobile app to order from conveyor belts rather than interact with staff. tested A robotic chipmaker in California.