A group filed a lawsuit on Thursday claiming California illegally plans to enact a law on Jan. 1 that could, among other things, raise the industry’s minimum wage to $22 per hour.
Save Local Restaurants says in its lawsuit that AB 257, or the FAST Act, also known as Fast Food Recovery Act, cannot take effect as planned after the group on Dec. 5 submitted a petition signed by more than 1 million Californians to put the measure on the ballot in November 2024. Save Local Restaurants includes International Franchise Association, the National Restaurant Association, and the U.S. Chamber of Commerce.
The law would give an appointed 10-member state council, or “Fast Food Council,” wide-ranging authority over fast food and fast casual restaurants in California with more than 100 locations nationwide. The council could raise the minimum wage to $22 per hour in 2023 and up to 3.5% annually after that. It could also set minimum standards for working conditions, maximum hours worked, security, and more.
Normally, a petition for referendum would put the law on hold but in December the California Department of Industrial Relations (DIR) said it would implement the law as planned. DIR said the law...
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