California legislators are working to change the fast-food business model to protect workers’ rights. Opponents say it will make becoming a business owner much harder.
And while business owners say the bill that just passed the California Assembly will not provide any extra protection for workers, they also say the union push this time around may get the bill across the finish line.
Of the 3.58 million fast-food workers in the U.S., 73% work in a franchise, according to California Assembly analysis. Franchise owners license with a larger company to use a business name and a menu to share in the company’s larger branding.
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Assembly Bill 1228 would make fast-food franchisors with more than 100 locations nationally share legal liability for paycheck violations, worker safety complaints, and class-action lawsuits.
Laws making franchisors culpable for labor violations for a franchise’s employees are commonly called joint employer.
“This bill is aimed at protecting workers and supporting local businesses by ending corporations’ ability to exploit the franchise system,” said Assemblymember Chris Holden (D-Pasadena), the bill’s author.
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