California Gov. Gavin Newsom on September 5, 2022, signed into law AB 257, the Fast Food Accountability and Standards Recovery Act (FAST Act), which creates an unelected Fast Food Council to set minimum standards that affect the terms of employment for fast-food restaurant chains with 100 or more locations nationally and at least one in California. The FAST Act is union-backed and is said to be part of a larger effort to unionize the restaurant industry in California.
Opponents of the FAST Act quickly filed for a voter referendum on September 7, 2022, to thwart the bill before it was to take effect on January 1, 2023. They had 90 days from the date of the bill’s enactment to collect the number of signatures required to qualify for a ballot measure. California’s Department of Industrial Relations (DIR) acknowledged receipt of the signatures and it is currently validating that the requirements for a referendum have been met.
Notwithstanding, California announced its intent to proceed with the adoption of the FAST Act as of January 1, 2023, despite the constitutional requirements under California law, that a measure being put to a referendum vote be suspended until ballots are cast by the public. The coalition “Save Local Restaurants,” comprised of businesses and restaurant trade groups, filed a lawsuit in Sacramento Superior Court on December 28, 2022, to “ensure the democratic process established by the California Constitution is respected.” It asserts that it submitted...
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