Judge halts California fast-food law as restaurants, unions hammer each other
A Sacramento Superior Court judge ruled Friday blocking a California bill that would give the state the power to negotiate wages and working conditions for fast food workers.
Block relies on the results of a proposed referendum pushed by the fast food giant to trample on proposed changes.
The Fast Food Accountability and Standards Restoration Act (“FAST”) has met with significant backlash from restaurateurs and franchisees as unions battle to give states seats in wage negotiations.
Fast-food franchisers say California’s AB 257 could increase costs and undermine business models
A sign in front of a McDonald’s restaurant in San Leandro, California, on April 28, 2022. (Justin Sullivan/Getty Images/Getty Images)
The law establishes a 10-member council that can set parameters for minimum wages and working hours at fast food restaurants in the state.
| ticker | safety | last | Change | change % |
|---|---|---|---|---|
| MCD | McDonald’s Co., Ltd. | 263.53 | -2.40 | -0.90% |
| CMG | Chipotle Mexican Grill Inc. | 1,387.49 | -17.46 | -1.24% |
Interest groups in the restaurant industry are calling for the bill to be repealed in a November 2024 referendum.
McDonald’s US President Joe Erlinger Criticizes California’s Fast Food Workers Bill
California Governor Gavin Newsom angrily denounced the U.S. Supreme Court’s decision to overturn the Roe v. Wade ruling at a press conference in Sacramento, California, Friday, June 24, 2022. (AP Photo/Ricci Pedroncelli/AP Newsroom)
Election officials haven’t finished counting signatures on the referendum proposal yet, but if enough are counted, a court ruling will suspend the law from taking effect until Californians can speak out.
The California Department of Labor Relations plans to begin enforcing the law on Sunday until the reform petition is successful. But concrete negotiations on wages are unlikely to begin until the second half of next year.
CLICK HERE FOR MORE INFORMATION ON FOX BUSINESS
The Service Employees International Union has been a key advocate for legislation.
CLICK HERE TO GET FOX BUSINESS ON THE GO
The union has single-handedly accused McDonald’s, Chipotle and other chains of ignoring worker welfare for business considerations.