California voters will no longer decide the fate of the controversial Fast Food Accountability and Standards Recovery Act (FAST Act), which was expected to significantly affect fast-food restaurants in the state, including franchise operations.
Following a series of meetings with representatives of the fast-food industry and labor unions, California Gov. Gavin Newsom has signed into law AB 1228. The law withdrew a pending voter referendum set for November 2023, repealed the FAST Act and implemented new regulations for the fast-food industry that represent a compromise.
Newsom previously signed the FAST Act in September 2022. The law authorized the creation of a Fast Food Council that would have broad authority to establish sector-wide minimum standards on wages, working hours and other working conditions related to the health, safety and welfare of fast-food restaurant workers. Read our prior alert here.
Opponents of the FAST Act lobbied against the law and quickly garnered enough signatures for a voter referendum initiative. On January 24, 2023, the California Secretary of State verified and qualified a referendum challenging the FAST Act. It was set to appear on the ballot in November 2023.
During the intervening months, all sides worked out a compromise. AB 1228, which was signed September 28, 2023, reflects the agreement reached between labor representatives and the fast-food industry. The law will remain in force until January 1, 2029, or as otherwise...
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