California governor signs law that may raise pay for fast food workers

Fast food workers and their supporters march past the state Capitol calling on passage of a bill to provide increased power to fast-food workers, in Sacramento, Calif., Tuesday, Aug. 16, 2022. If approved by lawmakers and signed by the governor, AB257 would give California's more than half-million fast food workers would get increased power and protections under the first-in-the-nation measure.

SACRAMENTO — California legislators signed a nation-leading measure giving more than a half-million fast food workers more power and protections, despite the objections of restaurant owners who warned it would drive up consumers’ costs.

Gov. Gavin Newsom signed the law on Monday, creating 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.

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 cost of living increases thereafter.

Newsom said he was proud to sign the measure into law on Labor Day.

“California is 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,” he said in a statement. “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.”

Pedestrians walk below an In-N-Out Burger restaurant sign in San Francisco, Thursday, Aug. 25, 2022. More than a half-million California fast food workers are pinning their hopes on a groundbreaking proposal that would give them increased power and protections.

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Cars wait in the drive-thru line at a McDonald's restaurant in San Francisco, Thursday, Aug. 25, 2022. More than a half-million California fast food workers are pinning their hopes on a groundbreaking proposal that would give them increased power and protections.

The state legislature approved the measure on Aug. 29. Debate split along party lines, with Republicans opposed.

Sen. Brian Dahle, the Republican nominee for governor in November, had called it “a steppingstone to unionize all these workers.”

Supporters had said they hoped the measure would inspire similar efforts elsewhere.

Fast-food workers drive though a McDonald's restaurant demanding a $15 hourly minimum wage in East Los Angeles, Friday, March 12, 2021. California lawmakers adjourned this year's legislative session, Wednesday Aug. 31, 2022, leaving Gov. Gavin Newsom with 30 days to sign or reject hundreds of bills including a bill to give a half-million fast food workers more power, protections and wages.

Restaurant owners and franchisers cited an analysis they commissioned by the UC Riverside Center for Economic Forecast and Development saying that the legislation would increase consumers’ costs.

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