On September 5, 2022, California Governor Gavin Newsom signed landmark legislation aimed at further regulating the working conditions and wages of California’s fast- food workers. This bill has immediate impact on certain employers and franchisors doing business in the Golden State.
Assembly Bill (AB) 257, also known as the Fast Food Accountability and Standards Recovery Act or the FAST Recovery Act, authorizes the creation of a Fast Food Council (Council) that will be tasked with establishing minimum standards with respect to the minimum wage, maximum hours of work, the standard conditions of labor and other working conditions for fast-food workers throughout California.
WHO IS AFFECTED BY THIS LEGISLATION AND WHO IS EXCLUDED?
The FAST Recovery Act is aimed at regulating fast-food chains, defined as a set of restaurants consisting of 100 or more establishments nationally that share a common brand or are characterized by standardized options for décor, marketing, packaging, products and services.
Eateries that operate within grocery stores and bakeries are not considered fast-food restaurants and are excluded from the legislation. Also excluded are any employees whose employment is covered by a valid collective bargaining agreement that expressly provides for the wages, hours of work and working conditions of the employees, and a regular hourly rate of pay that is no less than 30% more than the state minimum wage for those employees (if the agreement offers equivalent or...
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