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Wednesday, January 21, 2026

Open for Business: More Jobs, Restaurants, and Protections Under New York City’s Fast Food Just Cause Law - NYC.gov

The vast majority of workers in New York City are at-will employees, meaning that they can be fired for any reason that does not violate existing anti-discrimination and retaliation laws, and without being provided with a justification for their firing. As a result, many workers in New York City, particularly in low-wage industries that have historically been plagued by worker exploitation, have been terminated for arbitrary and non-performance-related reasons. To ameliorate this problem, New York City passed first-in-the-nation just cause termination legislation that requires there be just cause for termination in the fast food industry. This report analyzes economic data and past enforcement to determine the impact of Local Laws 1 and 2 of 2021 (“Just Cause Law” or “the Law”) on New York City’s fast food industry and its workforce.

Key Findings

This report analyzed employment survey data and found that, since implementation in July 2021, the Just Cause Law has not led to a decrease in fast food employment nor the number of establishments. This report also examined specific cases investigated by the New York City Department of Consumer and Worker Protection (DCWP) in its enforcement of fast food just cause and found that the Law reduced arbitrary firings and strengthened anti-retaliation protections for workers in the industry.

  • The number of fast food establishments in New York City has slightly increased since the implementation of the Just Cause Law. Between the third...


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