A LIVING WAGE

California's senate just passed a 'fast food council' law that could force McDonald's, Starbucks, and other chains to raise wages up to $22 an hour

mmeisenzahl@businessinsider.com (Mary Meisenzahl) - 

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California's state senate just passed a bill that would totally change how fast food is regulated in the state.
The bill still has to be signed by California Gov. Newsom.
Labor advocates say the bill will give workers a voice, while opponents say it could raise prices.

The California state senate just passed a bill that could completely change how the fast food industry is regulated in the state.

If signed by Governor Gavin Newsom, AB 257, known as the FAST Recovery Act, will create a 10-member council of workers, company representatives, and government officials to set pay and safety standards across the state. The council would have the power to increase industry minimum wage to $22 next year, with jurisdiction over chains with more than 100 locations, including Starbucks, Chipotle, McDonald's, and others.

"We know the systemic issues workers in this industry face, and the only way to address them is to give cooks and cashiers a real seat at the table with their employers," president of the Service Employees International Union (SEIU) California State Council David Huerta said in a statement.

Restaurant owners, franchisees, and right-wing politicians voiced opposition to the bill, citing fears that it could raise costs for consumers.

"At the end of the day, it's going to drive up the cost of the products that they serve," state senator and Republican nominee for governor Brian Dahle told the AP. International Franchise Association president Matthew Haller said the bill raised a "fire alarm" to restaurant owners in other states about the potential for similar measures elsewhere.

Politicians on both sides of the aisle noted that the legislation could be replicated in other states.

The fast food bill passed during a unionization wave in the quick service industry, which has been notoriously difficult to organize. Over 200 Starbucks locations across the US have won union elections since December 2021, and Chipotle workers in Michigan just won a vote to form the chain's first union.