It’s been a busy spring at the California state capitol. Among the few thousand bills being considered by California’s legislature this year, AB 1228 stands out. The bill would essentially create joint liability for employment-related claims in the fast food industry for both a franchisee and its franchisor. The bill continues to work its way through the legislature and represents a dramatic change in California employment law.
AB 1228 is the latest chapter in a somewhat convoluted history. Last year, Assemblymember Christopher Holden sponsored AB 257, the Fast Food Accountability and Recovery Act or “FAST” Act. That law created a “council” that was given the authority to set minimum working standards and wages in the fast food industry. Earlier versions of the bill included joint liability provisions similar to those found in AB 1228. Those were dropped as AB 257 worked its way through the legislative process. Governor Newsom eventually signed AB 257, sans joint liability, into law on Labor Day, September 5, 2022.
In turn, a referendum was qualified for the ballot; voters will decide whether to retain or reject the FAST Act when they go to the polls in November 2024. In the meantime, the FAST Act is not in effect. Following the qualification of that referendum, Assemblymember Holden introduced AB 1228, resurrecting the joint liability provisions, which had previously been dropped from AB 257.
AB 1228 (like AB 257) applies to a “fast food restaurant.” A fast food...
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