California Gov. Newsom signs landmark fast-food workers bill, despite concerns it will drive up costs
AB 257 gives more power and protections to fast food workers in California
International Franchise Association president and CEO argues franchise owners are better at identifying the needs of their employees.
California Gov. Gavin Newsom on Monday signed a landmark bill that expands power and protections for fast-food workers despite opposition from restaurant owners who warned it would drive up consumer costs.
The landmark law, AB 257, creates a 10-member Fast Food Council with equal numbers of workers' delegates and employers' representatives, along with two state officials, empowered to set minimum standards for wages, hours and working conditions in California.
FILE: Fast-food workers drive through a McDonald's restaurant demanding a $15 hourly minimum wage in East Los Angeles, Friday, March 12, 2021. (AP Photo/Damian Dovarganes, File / AP Newsroom)
In a Labor Day message, the Democratic Governor said California was "committed to ensuring that the men and women who have helped build our world-class economy are able to share in the state's prosperity."
"Today's action gives hardworking fast food workers a stronger voice and seat at the table to set fair wages and critical health and safety standards across the industry," Newsom said.
The law caps minimum wage increases for fast food workers at chains with more than 100 restaurants at $22 an hour next year, compared to the statewide minimum of $15.50 an hour, with the cost of living increases thereafter.
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The state legislature approved the measure on Aug. 29. Debate split along party lines, with Republicans opposed.
Assemblyman Chris Holden, D-Pasadena, who introduced the bill, said it will have an "immediate impact on elevating the voice of the fast food worker, by giving them a say in determining workplace standards."
"Speaking as a former franchise owner, I would have welcomed this inclusive process, that in reality benefits not only the worker but franchisee as well," he said. "I remain hopeful the opposition to this bill will give it a chance to work. Given, the final version of the bill removed many expressed concerns of subpoena power and joint-liability."
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Restaurant owners and franchisers, however, cited an analysis they commissioned by the UC Riverside Center for Economic Forecast and Development saying that the legislation would increase consumers' costs.
The California Restaurant Association derided the bill as "reckless," and said it would increase costs by 20% for restaurant goers without improving existing worker protection.
"By signing AB 257 into law, Governor Newsom has not leveled the playing field but instead targeted one slice of California’s small businesses and consumers who rely on counter service restaurants to feed their families," the association said.
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"As individual employers and neighborhood restaurants across the state, we will use every tool at our disposal to protect our consumers, workers, and other job providers from the pain and havoc that will result from enacting this bill."
The Associated Press contributed to this report.