California Bill Could Hike Fast-Food Minimum Pay To $22 Per Hour

(UPI) – On September 5, Despite the strong opposition from the restaurant sector, California Governor Gavin Newsom signed a historic bill into law on Labor Day Monday that has the potential to raise the state’s minimum wage for workers in the fast-food industry to $22 per hour in 2019. A Fast Food Council will be established as a result of AB 257, also known as the Fast Food Accountability and Standards Recovery Act or Fast Act.

This council will be made up of workers’ delegates, employers’ representatives, and state officials. Pay, hours, and working conditions in California fast-food outlets with more than 26 employees will be decided collectively by the council of ten members. “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 in a statement.

“Today’s action gives fast-food workers a seat at the table to set fair wages and critical health and safety standards across the industry.” “I’m proud to sign this legislation on Labor Day when we pay tribute to the workers who keep our state running while we work to build a stronger, more inclusive economy for all Californians,” the governor said. “I’m also proud to sign it on Labor Day when we honor the workers who keep our state running.”

California Bill Could Hike Fast-Food Minimum Pay To $22 Per Hour
California Bill Could Hike Fast-Food Minimum Pay To $22 Per Hour

The new law was hailed as a “historic triumph for fast-food workers’ decade-long campaign for fair pay and a voice on the job” when it was passed and signed by Newsom. Advocacy organizations such as Fight for $15 and the Service Employees International Union applauded the event. The laws will apply to fast-food restaurants in the state of California that are a part of chains that have more than one hundred locations across the country.

According to Restaurant Business, it is expected that the new law will have an effect on approximately 150 businesses and 19,000 locations. Since the state legislature of California passed Assembly Bill 257 on August 29, the restaurant sector has been vocal in its opposition to the bill, claiming that it will drive up the cost of fast food and affect smaller franchise owners. The National Restaurant Association has issued a warning that additional states, such as New York, Illinois, Oregon, and Washington, will most likely follow suit.

California Bill Could Hike Fast-Food Minimum Pay To $22 Per Hour
California Bill Could Hike Fast-Food Minimum Pay To $22 Per Hour

“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, the executive vice president of public affairs for the NRA, said in a statement. “The cost will likely spread to struggling independent restaurants as well.”

This bill will force many owners closer than ever before to closing their doors in their communities at a time when California restaurants are suffering from increasing inflation in food prices and operating costs. Additionally, the International Franchise Association criticized the new rule, advising customers that they should anticipate a 20% increase in the price of menu items. According to a statement by IFA CEO Matthew Haller, “By signing this bill, Governor Newsom is siding with special interests rather than the people and small businesses of California.”

Haller asserted that “this measure has been founded on a lie,” and that as a result, “small business owners, their employees, and their customers will all have to pay the price.” “At a time when things are already difficult for franchise owners and their clients, this bill sticks a knife in their eye.”

California Bill Could Hike Fast-Food Minimum Pay To $22 Per Hour
California Bill Could Hike Fast-Food Minimum Pay To $22 Per Hour

Final Lines

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