California Assembly Bill 1228 or, the “Fast Food Franchisor Responsibility Act” (“Bill”) seeks to make fast food franchisors liable for certain civil violations committed by their franchisees. The Bill was passed by the California Assembly on May 31 and awaits a vote in the Senate. If signed into law in its current form, the Bill would drastically increase the legal exposure of certain franchisors in the fast-food industry.
In September 2022, the California State Legislature passed A.B. 257, the Fast Food Accountability and Standards Recovery Act (“FAST Act”). The FAST Act provides for the creation of the country’s first state-run “Fast Food Council” staffed by a mixture of government employees, workers, union representatives, and employers that would establish industry standards for wages, hours, and working conditions. The initial draft of the FAST Act also created joint liability for fast food franchisors for the actions of their franchisees, but that provision was excluded in the final bill passed by the Senate. Prior to the FAST Act taking effect, vocal opponents of the law filed a petition for a referendum to be placed on the general election ballot in 2024, which has resulted in enforcement of the FAST Act being delayed until the referendum is decided. Regardless of whether the FAST Act becomes enforceable, however, the Bill would revive its excluded joint employer liability provisions.
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