California lawmakers may raise fast-food workers’ pay to $20 per hour.
California Legislators Close to Passing Bill to Raise Minimum Wage for Fast-Food Workers
California legislators are on the verge of passing a groundbreaking bill that would raise the minimum wage for fast-food workers to $20 an hour. This comes after a hard-fought battle between restaurant owners, labor unions, and the state over new regulations and oversight.
“AB 1228, as amended, creates a path forward to resolve employer community concerns around the content of AB 257 (2022) while preserving fast food workers’ hard fought efforts to secure a seat at the table and means to raise standards,”
The bill, known as Assembly Bill (AB) 1228, must pass both houses of the state Legislature by September 14th for the agreement to be valid. It has already passed the Assembly and was approved by the state Senate’s Labor, Public Employment, and Retirement Committee.
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In addition to the pay raise, the bill also establishes a new council dedicated to addressing issues such as wages, working hours, working conditions, and health and safety concerns within the fast-food industry.
The new minimum wage will only apply to fast-food restaurants in California that are part of a chain with 60 or more locations nationwide. Bakeries that produce and sell bread will be exempt.
The agreement has received praise from the national organization Fight for $15, which advocates for higher wages for fast-food workers. They co-sponsored the bill along with the Service Employees International Union (SEIU California).
“After years of organizing [and] pressure from workers, legislation was just introduced in California that gives us a seat at the table, power in the industry, and will raise fast food workers wages to $20/hr,” the group posted on X, formerly known as Twitter.
However, not everyone is in favor of the bill. A group called Save Local Restaurants, led by the National Restaurant Association, the U.S. Chamber of Commerce, and the International Franchise Association, filed a lawsuit against California in December 2022 to stop the implementation of last year’s controversial Assembly Bill 257, The FAST Recovery Act.
A Sacramento Superior Court judge granted a preliminary injunction, halting the new law from taking effect in January. The FAST Recovery Act would have created a Fast Food Sector Council with the power to regulate the state’s fast-food restaurants and potentially raise the minimum wage for fast-food workers to $22 an hour.
If passed, the new agreement would repeal the FAST Recovery Act but incorporate some of its provisions, including the creation of a nine-member Fast Food Council. This council would include representatives from the fast-food industry, franchisees, restaurant owners, employees, and unions.
Under the new bill, the council would have the authority to increase the minimum wage each year by up to 3.5 percent or the percentage of increase in the U.S. consumer price index for urban wage earners and clerical workers, whichever is lower.
Additionally, as part of the agreement, Save Local Restaurants would be required to withdraw its ballot initiative by January 1, 2024.
“This agreement is in the best interest of workers, local franchise restaurant owners, and brands, and protects the franchise business model that has provided opportunities for thousands of Californians to become small-business owners,” said Matt Haller, CEO of the International Franchise Association.
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