California Gov. Gavin Newsom (D) on Monday signed a bill that could increase wages for fast food workers to up to $22 per hour in what labor advocates are touting as a "groundbreaking step" for low-wage workers.

Driving the news: Newsom signed the Fast Food Accountability and Standards Recovery Act, or A.B. 257, on Labor Day, despite facing fierce opposition from business groups, who warned that the law could increase costs.

• "Today's action gives hardworking fast-food workers a stronger voice and seat at the table to set fair wages and critical health and safety standards across the industry," Newsom said in a statement.
• The bill will create a 10-person council — made up of business, labor and government representatives — to designate an industry-wide minimum wage, which could go as as high as $22 per hour, with annual raises of either 3.5% or the rate of inflation.

The big picture: The bill could trigger duplicate laws nationwide, Axios' Emily Peck reports.

• The law also may signal the re-emergence of "sectoral bargaining," a tactic in which workers from different companies in the same industry negotiate for pay together, Peck notes.
• The bill will cover as many as 550,000 fast food workers in California.

By the numbers: The minimum wage in California is currently $15.00/hour for employers with 26 or more employees, and $14.00/hour for employers with 25 or fewer workers.

What they're saying: "It was a battle of Goliath versus David and we just had our voice to ensure...

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