United States: California introduces a minimum wage for fast food restaurant employees

California’s Democratic governor Gavin Newsom has finally signed the Fast Food Accountability and Standards Recovery Act/ FAST Recovery Act, or AB 257, which will improve working conditions in the fast food industry in his state (c.f. article No.13181). The act establishes a Fast Food Council within the Department of Industrial Relations that will comprise 10 members including 4 employer representatives, 4 employee representatives, one representative from the Department of Industrial Relations, and one representative from the Governor’s Office of Business and Economic Development. This council will now set an hourly minimum wage and regulate working conditions. The text sets a maximum ceiling of $22, well above the $15.5 currently in force in California, and provides for a cost-of-living adjustment of this wage starting in 2024. In addition, the council will have to establish minimum safety standards and draw up anti-discrimination rules. “Today’s action gives hardworking fast-food workers a stronger voice and seat at the table to set fair wages,” Gavin Newsom enthused. Matthew Haller, president of the International Franchise Association (1,200 franchises), on the other hand, denounced “a fork in the eye” to his members. The employers fear that the rise in wage costs will be reflected in meal prices. More than 550,000 employees of the McDonald’s, Wendy’s, Papa John’s, Chipotle and Burger King chains are affected.