The new law allows a government panel to set the minimum wage up to $22 an hour for QSR workers in the state.
ALEXANDRIA, Va.—California Governor Gavin Newsom has signed the FAST Recovery Act, which sets wages for fast-food workers in the state, reports the Wall Street Journal. The law creates a government panel that would set hourly wages for fast-food workers of up to $22 beginning next year. The wages can increase annually by the same as the consumer-price index, up to a maximum of 3.5%.
“California is committed to ensuring that the men and women who have helped build our world-class economy are able to share in the state’s prosperity,” said Governor Newsom in a statement. “Today’s action gives hardworking fast-food workers a stronger voice and seat at the table to set fair wages and critical health and safety standards across the industry.”
Fast-food operators and franchisees were against the bill and urged the governor to veto it. The groups said the legislation impacts restaurants’ ability to thrive, as many restaurants will have to bear the cost of increasing workers’ pay.
The International Franchise Association said in a statement that Newsom sided with special interests by signing a bill “designed to hurt the franchise business model in California.”
The group called the bill “a fork in the eye to franchise owners and customers at a time when it hurts most.”
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