www.usatoday.com Open in urlscan Pro
151.101.130.62  Public Scan

Form analysis
0 forms found in the DOM

Text Content

How I bonds perform Check current rates Best CD rates this month Protecting your
funds

For You U.S. Sports Entertainment Life Money Tech Travel Opinion
ONLY AT USA TODAY:
Newsletters For Subscribers From the Archives Crossword eNewspaper
Magazines      Investigations Weather Forecast Podcasts Video Humankind Just
Curious
Pets Food Reviewed Coupons Blueprint Best Auto Insurance Best Pet Insurance Best
Travel Insurance Best Credit Cards Best CD Rates Best Personal Loans




MONEY
Fast Food Industry
Add Topic


CALIFORNIA'S FAST FOOD BILL PROMPTS VIRGINIA AND NEW YORK COPYCATS, RAISING
STAKES FOR EVERYONE

Medora Lee
USA TODAY


PlayPause
Sound OnSound Off

0:00
0:48
AD
0:15
SKIP
ClosedCaptionOpen ShareEnter Full ScreenExit Full Screen





A California bill that would create a council regulating everything from wages
to working conditions at fast food chains isn’t slated to go to state voters for
a final decision until November 2024. But copycat legislation is already
cropping up elsewhere, setting up a fight over how far unions and politicians
should go to protect workers’ rights and whether workers are even the center of
this battle.

AB 257, or the FAST Act, also known as Fast Food Recovery Act, would give an
appointed 10-member “Fast Food Council,” wide-ranging authority over large
national fast food and fast casual restaurants in California. Its powers would
include the authority to force restaurants to increase the minimum wage to $22
an hour and give annual raises of up to 3.5% after that. It could also set
minimum standards for working conditions, maximum hours worked, security, and
more.   



California Gov. Gavin Newsom signed the bill last September to go into effect on
Jan. 1, 2023, but restaurant group Save Local Restaurants collected a million
signatures to put the bill to a vote next year.

Even if a bill has been signed into law in California, opponents can collect the
requisite number of signatures to put the measure on the ballot and allow voters
to decide the final outcome. California tried to push ahead with the law anyway,
saying it had the authority to continue since all the signatures weren't yet
validated.



Save Local Restaurants immediately filed a lawsuit, arguing that never before
has a law been able to move forward while voter signatures were being validated.
Courts agreed, the law was halted, and signatures were validated. 

But the bill's influence had already been felt outside the state.

Virginia House delegate Irene Shin introduced on Jan. 20 a measure, HB 2478, to
establish a similar policy board within the executive branch of government in
her state. New York state Sen. Jabari Brisport introduced on Jan. 30 a fast food
franchisor accountability act, S3155.



California's FAST Act would "have a significant and long-term impact on the
California restaurant industry, and likely restaurants and other industries in
and outside of California," wrote law firm Greenberg Traurig in an analysis of
the law last September. "Proponents of the legislation have made it clear that
California is a starting point."

Open competition:FTC files first suits to stop companies from making workers
sign noncompete restrictions



While proponents say the measures will ensure fast-food workers receive living
wages and protections from a hostile workplace, including harassment and
retaliation, opponents say they are simply a power grab by unions to enlarge
their numbers and not a move to protect workers.

“Whether you’re a lawmaker, a business owner or leader, or an everyday voter,
one thing is clear: California has become a dramatic case study of putting bad
politics over good policy,” wrote Joe Erlinger, chief executive of U.S.
McDonald’s, in a letter. 

Return to office:Bad news, remote workers: You need to return to the office for
your employer to succeed

Shrinking bonus:GM salaried workers should expect smaller bonuses: How formula
works


WHAT’S AT STAKE FOR WORKERS? 

The law would give workers “a seat at the table to help set wage, health,
safety, training standards across the fast-food industry,” claims the Service
Employees International Union, which represents 2 million U.S. workers in health
care, the public sector and in the property services industry.



Supporters of the bill say the fast-food industry is rife with poor working
conditions, including low pay, few benefits, and frequent violations of
workplace laws.

“There are serious issues within the fast food industry,” said Vincent
Calderone, former chain restaurant owner, and Los Angeles employment attorney
who has a lawsuit against Del Taco for sexual harassment and retaliatory firing.
"They often ignore workplace issues, especially complaints of sexual harassment.
They do not take appropriate measures to stop it or prevent it, and oftentimes
take retaliatory measures against those who report it to discourage others from
complaining about such conduct.” 

Businesses note the industry already has protections with health, safety
and labor regulations, and they're not opposed to more "legislation that leads
to meaningful improvements in our communities, including responsible increases
to the minimum wage," Erlinger said.

Of 67 economists in an August Employment Policies Institute survey, 93% expect
operating costs will rise under the FAST Act, 84% said fewer restaurant chains
would want to operate in California and 73% said franchisees will close
restaurants.  




WHY DO FAST FOOD COMPANIES OBJECT? 

Fast-food companies say they don't object to higher wages or safe working
conditions. Instead, they claim to oppose government overreach at the bidding of
labor unions and the increased costs taxpayers and consumers would pay at
restaurants as a result of the law. 



“Simply put, organized labor hasn’t been successful going through the front door
– giving everyday workers the ability to choose whether they want a union,”
Erlinger of McDonald’s said in his letter. “So it asked for a backdoor – pushing
...lawmakers to introduce, pass and sign a bad policy that hurts small
businesses, workers, and consumers.” 

California’s Department of Finance opposed the bill, saying “it is not clear
that this bill will accomplish its goal.” Enforcing the law would increase
government costs and “could lead to a fragmented regulatory and legal
environment for employers and raise long-term costs across industries.” 

Consumers, already suffering from high inflation, could end up paying as much as
20% more for their food, some economists predict. 

Pay raise:Walmart will raise minimum hourly wage to at least $14 for store
employees

No free lunch:N.C. Chick-fil-A fined after paying workers with free meals
instead of a wage, Labor Department says




WHAT’S IN CALIFORNIA’S BUDGET? 

Even though there’s zero chance the FAST Act will become law during California’s
fiscal year 2023-2024, ending June 30, 2024, $4.6 million to hire 19 people to
enforce the FAST Act is included in the proposed budget.  

Some say this is an anomaly, especially since the budget request was made on the
same day a judge issued a temporary restraining order on the law, but the
California department that would implement the law said the funding was included
because signatures on the ballot initiative weren't confirmed until Jan. 24, two
weeks after Newsom released his budget plan.

Regardless, opponents say it’s the first glimpse of what the law, if passed,
could add to government costs. “That’s just a drop in the bucket of what’s
likely to come,” Erlinger said. Millions more dollars were penciled in for
subsequent fiscal years. 

Higher wages:Minimum wage is going up in 23 states as $15 an hour gains steam.
Is your state one of them?



Not working free:83 workers at LA restaurants weren't paid for overtime; owner
must pay $1.6M in back wages, feds say


WHAT HAPPENS NEXT? 

Neither side can predict the outcome of the ballot measure next year, but one
thing is sure: Californians will be flooded with advertisements come the fall of
2024. Greenberg and Traurig estimated more than $200 million would be spent in
this battle.

“This is exactly what the fast food industry was hoping for,” said Calderone,
the former restaurant owner and attorney. “This gives them the time they need to
raise money and start persuading voters to block this law from ever coming into
effect.” 

As for Virginia’s proposed bill, he said, “it’s a copycat of the California law,
and I have no doubt the fast food industry already has it on their radar.” 

Medora Lee is a money, markets and personal finance reporter at USA TODAY. You
can reach her at mjlee@usatoday.com and subscribe to our free Daily Money
newsletter for personal finance tips and business news every Monday through
Friday morning.    







CBDistillery

Plant-Powered Relaxation Delivered to Your DoorCarefully formulated by our
expert botanist and recommended by Dr. Frey, a Mayo Clinic-trained internal
medicine specialist.CBDistillery|
AdAd


Undo
GoodRx

Traveling with Diabetes: 7 Steps for a Stress-Free TripGoodRx|
AdAd


Undo
StuffAnswered

High Interest Savings AccountsStuffAnswered|
AdAd


Undo
Apartments.com

Apartment Hunting in Connecticut?Discover and Lease Your New Home in Your
AreaApartments.com|
AdAd


Undo
Answers.com

Walk-in Bathtubs May Be the Newest Trend in Modern BathroomsDiscover the rising
popularity of walk-in bathtubs for seniors and those with reduced mobility.
Learn how they can transform your bathroom experience and save
money.Answers.com|
AdAd


Undo
Vitamix

Mother's Day Gift Guide: Find the Perfect Blender for HerVitamix|
AdAd


Undo

New Arena

Unleashing the Greatest 5-Man Rotations in MLB HistoryNew Arena|
AdAd


Undo
Babbel

Want to Learn a New Language This Spring?Get Up To 60% Off Your
Subscription!Babbel|
AdAd


Undo

Savings Accounts

2023's Highest Yield Savings Accounts For SeniorsSavings Accounts|
AdAd


Undo
Brunchesncrunches

This "Beauty Serum" Will Transform Your 50 Year Old SkinBrunchesncrunches|
AdAd


Undo


Deal of the Day
Reviewed Deal of the Day

Cariuma Just Dropped New Snoopy Sneakers For Earth Day!REVIEWED
View Deal
Recommendations are independently chosen by our editors. Purchases you make
through our links may earn us a commission.


Undo


Recommended

Can dairy cows help fight climate change? The answer may surprise someStory from
the Innovation Center for U.S. Dairy


Undo



Featured Weekly Ad

More Stories


Colorado woman killed after rock thrown through windshieldnews


Undo

Kevin Durant, Russell Westbrook exchange caught on mic'd up videosports


Undo
CBDistillery

Plant-Powered Relaxation Delivered to Your DoorCBDistillery|
AdAd


Undo








About Us Newsroom Staff Ethical Principles Request a Correction Press Releases
Accessibility Sitemap Subscription Terms & Conditions Terms of Service Do Not
Sell / Share / Target My Info Privacy PolicyDo Not Sell My Info/Cookie Policy
Contact Us Help Center My Account Give Feedback Get Home Delivery eNewspaper USA
TODAY Shop USA TODAY Print Editions Licensing & Reprints Advertise Careers
Internships Support Local Business
News Tips Submitting letters to the editor Podcasts Newsletters Mobile Apps
Facebook Twitter Instagram LinkedIn Pinterest YouTube Reddit Flipboard RSS
10Best Reviewed Jobs Sports Weekly Studio Gannett USA TODAY Sports+ Classifieds
Coupons Blueprint Auto Insurance Pet Insurance Travel Insurance Credit Cards
Banking Personal Loans
© 2023 USA TODAY, a division of Gannett Satellite Information Network, LLC.



How I bonds perform Check current rates Best CD rates this month Protecting your
funds

For You U.S. Sports Entertainment Life Money Tech Travel Opinion
ONLY AT USA TODAY:
Newsletters For Subscribers From the Archives Crossword eNewspaper
Magazines      Investigations Weather Forecast Podcasts Video Humankind Just
Curious
Pets Food Reviewed Coupons Blueprint Best Auto Insurance Best Pet Insurance Best
Travel Insurance Best Credit Cards Best CD Rates Best Personal Loans

More stories to check out before you go


Keep on reading


Colorado woman killed after rock thrown through windshieldInvestigators say
Alexa Bartell was talking to a friend on the phone when the line went silent.
Her friend tracked her and found her Bartell dead.USA TODAY
Group 3


Undo

Kevin Durant, Russell Westbrook exchange caught on mic'd up videoDurant and
Westbrook, teammates with the Thunder for eight seasons, are facing off in the
first round of the NBA playoffs.USA TODAY
Group 3


Undo

Marjorie Taylor Greene censored after calling Homeland Security Secretary
Mayorkas a 'liar'USA TODAY
Group 3


Undo

Nate Diaz chokes man unconscious during New Orleans street fightNate Diaz was
involved in a fight on the streets of New Orleans after igniting a physical
kerfuffle at a Misfits Boxing event.USA TODAY
Group 3


Undo

' ' '
' ' '


Masters worker explains 'brutal' conditions at Augusta NationalTwo retired
professionals helped at Augusta National, assuming Masters week would be a
dream. It wasn't.USA TODAY


Undo


How Jake Gyllenhaal, Guy Ritchie humanize war in 'The Covenant' movieA sauna was
to blame for the sweaty first impression Dar Salim made on co-star Jake
Gyllenhaal in Guy Ritchie's Afghanistan war movie 'The Covenant.'USA TODAY


Undo

O'Reilly Auto Parts manager who stuck up for a woman wins $3M verdictO'Reilly
Auto Parts says it fired a manager who reported sexual harassment of a woman
because he waited too long.USA TODAY


Undo

Las Vegas Raiders owner Mark Davis rips Oakland A's move to his cityLas Vegas
Raiders Mark Davis aired his grievances regarding the Oakland A's potential
relocation to his city.USA TODAY


Undo

CBDistillery

Plant-Powered Relaxation Delivered to Your DoorCarefully formulated by our
expert botanist and recommended by Dr. Frey, a Mayo Clinic-trained internal
medicine specialist.CBDistillery|
SponsoredSponsored


Undo
GoodRx

Traveling with Diabetes: 7 Steps for a Stress-Free TripGoodRx|
SponsoredSponsored


Undo


Chris Christie slams 2024 GOP silence on Trump 'like he's Voldemort'USA TODAY


Undo

Rape happens to men. It happened to me. Telling my story saved my lifeUSA TODAY


Undo

StuffAnswered

High Interest Savings AccountsStuffAnswered|
SponsoredSponsored


Undo
Apartments.com

Apartment Hunting in Connecticut?Apartments.com|
SponsoredSponsored


Undo