The new law essentially creates a form of sectoral bargaining more commonly seen in other countries, however, that concept is anathema to American labor policy, which is generally covered by the National Labor Relations Act.
On August 29, the California legislature passed the Fast Food Accountability and Standards Recovery Act (FAST Recovery Act or AB 257), a radical proposal to micro-manage the fast-food restaurant industry, as this blog reported last week. Following its passage, the bill went to Governor Gavin Newsom for his consideration, and despite urging from the business community to veto the bill and opposition from his own Department of Finance, the governor signed it into law on Labor Day, September 5.
As enacted, AB 257 establishes a 10-member “Fast Food Council” whose members will be appointed by the Governor, the Speaker of the Assembly, and the Senate Rules Committee. The council will be empowered—actually, required—to dictate various terms of employment for all fast-food restaurants whose brands have more than 100 locations nationwide.
According to the legislative counsel’s digest, “the purpose of the council would be to establish sectorwide [sic] minimum standards on wages, working hours, and other working conditions related to the health, safety, and welfare of, and supplying the necessary cost of proper living to, fast food restaurant workers….”
In other words, AB 257 is essentially creating a form of sectoral bargaining more commonly seen in other...
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