On Monday, California Governor Gavin Newsom signed a bill that gives more than half a million fast food workers more rights and protections, despite the objections of restaurant owners who warned it would increase consumer prices.
The bill establishes a 10-member Fast Food Council with equal numbers of worker delegates and company representatives, as well as two state officials with the authority to establish minimum standards for pay, hours, and working conditions in California.
Newsom expressed pride in signing the bill into law on Labor Day.
“California is committed to ensuring that the men and women who helped build our world-class economy share in the state’s wealth,” he said. “Today’s action provides fast food employees with a greater voice and a place at the table to set fair wages and vital health and safety standards for the whole industry.”
Next year, the law limits minimum pay hikes for fast-food employees at chains with more than 100 locations to $22 per hour, compared to the statewide minimum wage of $15.50 per hour, with cost-of-living adjustments thereafter.
On August 29, the state legislature adopted the legislation. The debate was divided along party lines, with Republicans expressing opposition. Sen. Brian Dahle, the Republican nominee for governor in November, referred to it as “a stepping stone to unionize all of these workers.”
Price increases for consumers?
According to a research that restaurant owners and franchisers commissioned from the UC Riverside Center for Economic Forecasting, the measure will boost consumer prices.
Assemblywoman Luz Rivas called it a “watershed moment” for the labor movement.
Today’s signing of #AB257 into law is a watershed event in the labor movement, spearheaded by Black and Latino fast food workers creating a new paradigm for workers having a seat at the table. #unionsforall
— Luz Rivas, Assemblywoman (@AsmLuzRivas), September 5, 2022
Members of the advocacy group “Battle for $15,” which has led the fight for a higher minimum wage, also applauded the passage of AB 257.
Anneisha Williams, a Los Angeles fast-food worker and leader in the Fight for $15, stated, “We’ve gone on strike, marched in the streets, and gathered across the state to make sure our demand for a voice on the job was heard, even while powerful companies pulled out all the brakes to quiet us.” “We look forward to having a voice in the creation of safe and healthy workplaces throughout the fast-food sector, and to AB 257 serving as a model for employees around the country who are in dire need of a seat at the table.”
The federal minimum wage has remained at $7.25 per hour since 2009. If the minimum wage had maintained pace with productivity improvements over the past 50 years, it would be approximately $26 per hour now, or more than $50,000 per year.