WorkforceThe first-year cap on hourly pay is one of the concessions that were made in the first-of-its-kind Fast Act to make the bill more palatable in the state Senate. Advocates also dropped the joint-employer provision.
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Proponents of a bill that would give California’s fast-food workers a significant role in setting their own pay have agreed to cap the initial minimum wage set under the new process at $22 an hour.
The minimum allowable wage for quick-service workers in the state would rise every year after 2023 by 3.5% or the rate of change in the federal Consumer Price Index, whichever is lower.
Advocates of the controversial legislative proposal, known as the Fast Act, have also dropped a provision that was particularly worrisome for quick-service franchisors. Prior to Thursday, the bill called for classifying the licensors as joint employers of their California franchisees’ staffs, a shift they feared would make them the incessant targets of lawsuits filed by staff members with a gripe about their franchised employers.
The franchisor community had warned that they would likely cut back or cease franchising within the state if the law passed as is.
But the designation of franchisors as joint employers of their franchisees’ staff was excised from the bill.
The changes were among the most significant amendments made in the Fast Act this week as it moves quickly toward a Senate vote, which needs to take place by Aug. 31 if the measure is to pass...
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