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Saturday, April 25, 2026

California decides to implement the Fast Act on Jan. 1 despite the move toward a referendum - Restaurant Business Online

WorkforceRestaurant advocates have already filed a lawsuit to block the highly unusual move, which the action asserts is a clear violation of the state constitution.

California Gov. Gavin Newsom / Photo: Shutterstock

California has alerted leaders of the restaurant industry that it intends to begin adoption of the Fast Act, a law that involves fast-food workers in the process of setting their own wages, on Jan. 1, or roughly two years earlier than expected.

A coalition representing the restaurant industry filed a lawsuit Thursday to block the state from adopting the measure before voters decide in a 2024 referendum if they want the law to take effect. Under California’s constitution, a measure being put to a referendum vote is suspended until ballots are cast and the public’s preference is determined.

More than 1 million California voters have signed a petition circulated by the coalition, known as Save Local Restaurants, to get the referendum on the ballot. By law, fewer than 700,000 were required.

California’s Department of Industrial Relations (DIR) has acknowledged the state’s receipt of the signatures and indicated that it is currently validating the batch. But because that process is underway rather than completed, and may not be completed by Jan. 1, the state intends to proceed with adoption, said Katrina Hagen, director of the DIR.

“If and when the referendum challenging AB 257 qualifies for the ballot, the law will be put on hold,” Hagen wrote in a letter to...



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