Several states across the country could follow the lead of California, which passed a law last year with implications for the restaurant industry and raising concerns for franchisors and franchisees.
The Fast Food Accountability and Standards Recovery, or FAST Act, was signed into law in California in September, only to be injuncted early in 2023. Had it been implemented, the legislation would have created a board with the authority to make decisions related to pay, benefits and other aspects of the fast food industry on behalf of the workers.
The big sticking point is the minimum wage, as it would increase to $22 per hour and go up 3.5 percent per year afterward. Because of the injunction, though, the board hasn’t been created, and the law will be put up for a public referendum vote in the 2024 general election.
Attorney Rochelle Spandorf of Davis Wright Tremaine sees it positioned as a “pocketbook issue.”
“I would not be surprised if the referendum was to defeat the FAST Act,” Spandorf said. “Save Local Restaurants is going to make the pitch that your fast-food tab is going up because this act proposes to increase the minimum wage of fast-food restaurant workers.”
Save Local Restaurants, a coalition led by the International Franchise Association, National Restaurant Association and the U.S. Chamber of Commerce, also argues that the act will damage operators’ ability to hire employees, which would create a ripple effect as they try to compete.
“This council that will...
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