Insight

Executive Summary

• The Fast Food Accountability and Standards Recovery Act (or FAST Recovery Act, AB 257), which was signed into law by California Governor Gavin Newsom on September 5, 2022, creates a council of labor representatives and grants it authority to raise the minimum wage for fast-food workers to $22 per hour for an average wage increase of 41 percent as well as set hours and other conditions for those workers.
• This legislation will have significant implications for employers, consumers, and likely many of the workers themselves, leading critics of AB 257 to file a referendum to block the new California labor law.
• As wage-driven labor movements continue, observers have acknowledged the potential for federal AB 257-like legislation; this study finds that such significant and rapid wage increases nationally would drive up costs by up to 35 percent, resulting in increased prices, decreased demand for labor, or most likely, some combination of the two.

Introduction

On September 5, 2022, California Governor Gavin Newsom signed the Fast Food Accountability and Standards Recovery Act or FAST Recovery Act (AB 257), new California labor legislation, into law. The act creates a council of 10 labor representatives to set minimum standards for wages, hours, and other conditions for fast-food workers. Under the new law, the council has the authority to increase the minimum wage for fast-food workers in California to $22 per hour for an average wage increase of 41...

Read Full Story: https://www.americanactionforum.org/insight/considering-californias-22-minimu...