Opponents of the FAST Recovery Act, California’s landmark labor reform law, reached an important milestone on Dec. 5. A coalition backed by many of the country’s major restaurant corporations gathered enough signatures to trigger a statewide referendum — putting the legislation on ice until California’s 2024 general election.
The referendum pits national chains against the law’s backers, including the Service Employees International Union, in a protracted political battle. But a stopgap of 23 months gives a short reprieve to restaurants that fear the law’s impact on business, though operator anxiety is still high.
Some proponents of the legislation, which would create a council to regulate fast food wages and working conditions for chains with 100-plus units nationwide, hail it as a pro-worker, once-in-a-generation shift in labor law. Some opponents, on the other hand, claim the possibility the council could set a $22 minimum wage would threaten the basic QSR model.
The minimum wage in California will reach $15.50 an hour for employers on Jan. 1, 2023. A $22 hourly wage would be about 42% higher than this new pay floor. Some California municipalities have their own minimum wages, according to the UC Berkeley Labor Center. Emeryville has the highest minimum wage in the state, with workers earning at least $17.68 an hour.
Federal data shows most restaurant workers nationwide already earn more than California’s minimum wage, with average hourly earnings hovering around...
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