The FAST Act, a California bill that would regulate fast food industry wages, is a costly job-destroying law and reflects autocracy and not democracy.
That's the view of Joe Erlinger, president of McDonald's USA, in a public letter he released late last week regarding the AB25 legislation California leaders approved in the fall of 2022 and was set to go into effect Jan. 1 of this year.
The bill, after a hefty lobbying effort by fast-food industry leaders and local restaurants, will now need public voter approval to go into effect.
As QSRWeb reported in October, 2022 big food chains, including Chipotle Mexican Grill, Starbucks and McDonald's, raised over $12 million in efforts to reverse the law that could put the minimum wage in the fast food industry at $22 an hour. The state's current minimum wage is $15 an hour.
"As a 20-year member of a company that operates in many different political environments around the country and around the world, this looks much more like autocracy than democracy," Erlinger wrote in the letter, adding the legislation will destroy business growth through "bad policy and bad politics."
"Whether you're a lawmaker, a business owner or leader, or an everyday voter, one thing is clear: California has become a dramatic case study of putting bad politics over good policy," he wrote, stating the act will make it "all but impossible" to run small business restaurants.
The FAST Act has been roundly supported and driven by labor unions. Erlinger claims...
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