A Sacramento County Superior Court judge has temporarily blocked a new California law that would create a state-appointed council to negotiate pay and hours in the fast-food industry. AB 257, also called the FAST Recovery Act or the Fast Food Accountability and Standards Recovery Act, was signed into law by Gov. Gavin Newsom on Sept. 5, 2022, and was set to take effect Jan. 1.
The Dec. 30, 2022, court order stops the law from being implemented until the court hears the case and decides whether to grant a preliminary injunction. A hearing is scheduled for Jan. 13. If the court decides that the law can move forward, AB 257 may take effect.
A coalition of restaurant and business groups is backing an effort to overturn the law through a referendum on the California ballot in November 2024. If the referendum qualifies for the ballot, it would block the FAST Recovery Act until voters weigh in. The deadline for election authorities to verify a sample of signatures is Jan. 25.
"Looking into my crystal ball, I believe there is a high chance that the referendum will qualify for and be on the 2024 ballot, thus pausing implementation of the law. This will be a heavily fought ballot initiative with labor on one side and business on the other," said Robert Rodriguez, an attorney with Ogletree Deakins in Sacramento. "Given the inflationary climate right now, California voters may be receptive to the argument that FAST Act will significantly increase the costs and prices."
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