Political PR and advertising firms in California are going to owe Gov. Gavin Newsom a huge favor. That's because by signing the so-called Fast Recovery Act on Sept. 5, he opened the door to what could be hundreds of millions of dollars in spending by fast-food companies to kill it.
The act — formally the Fast Food Accountability and Standards Recovery Act, or AB 257 — creates an appointed council that could set wage and other workplace conditions for fast-food workers.
The council would be empowered to set a minimum wage as high as $22 an hour in 2023, though there is reason to doubt that wages would hit that ceiling.
Fast-food corporations are looking to buy their way out of a law intended to lift pay for their workers, ensure their stores are safe and healthy and improve the industry for everybody.
Mary Kay Henry, Service Employees International Union president
(The state minimum wage, currently $15 an hour for employers of 26 workers or more, and $14 for smaller businesses, will rise to $15.50 for all on Jan. 1.)
The restaurant industry has already taken steps to place the law before voters through a ballot measure.
If the industry can collect about 623,000 valid voter signatures by the first week of December, the referendum would go on the November 2024 ballot and the law would be suspended until then. If the referendum qualifies, voters can expect McDonald's, Burger King, KFC and their ilk to spend gigantic sums to overturn the law.
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