Newsom signs landmark law creating first-in-the-nation fast food council

On Labor Day Gov. Gavin Newsom signed a landmark measure he believes will empower and protect employees at fast food restaurants.

"This is indeed a water-shed movement in the history of the labor movement," said Service Employees International Union president Mary Kay Henry. 

Despite opposition from business owners and franchisees, Newsom announced he was signing the bill into law. In a recorded video he said, "Giving them more voice, giving them more choice, creating a new council."

The governor added, "I’m proud on Labor Day to sign that bill and enshrine it in law." 

AB257 or the Fast Food Accountability and Standards Recovery Act, establishes a first-in-the-nation fast food council. The 10-member council made up of franchisees, employees and government officials will set minimum standards for wages, hours and other working conditions.

"Gives 550,000 fast food workers a seat at the table and the power to develop solutions to low pay, health, safety, training and more," said Henry at a virtual news conference celebrating the bill’s signing. 

SEIU advocated for AB257 and organized strikes and rallies during the summer.The council’s standards would apply to any chain restaurant consisting of 100 or more locations nationwide. It would also cap the minimum wage for fast food workers at $22 in 2023; that is compared to the $15.50 statewide minimum.

The council is set to sunset in six years, giving lawmakers a chance to evaluate its effectiveness.

"A lot of people didn’t believe in us, a lot of people bashed us," said Evelyn Barillas, a fast food employee. "But, we were able to accomplish and make history. We made a big mark on history." 

The law faced stiff opposition from Republican lawmakers and from fast food companies, franchisees and restaurant associations. They argued owners already comply with strict labor regulations and believe the law will lead to increased prices for consumers.

"This is a stepping stone to unionize all these workers," said State Senator Brian Dahle during floor debate. Dahle is Newsom’s Republican challenger in November. "At the end of the day, it’s going to drive up the cost of the products they serve." 

Following Newsom signing the bill, the International Franchise Association released a statement saying in part: "This bill is a fork in the eye to franchise owners and customers at a time when it hurts most. IFA continues to hear over and over how local franchises do not know how they will be able to make it once this bill goes into effect. Underrepresented communities will be hit hardest."

The bill’s author, Assemblyman Chris Holden (D-Pasadena), a former franchise owner himself, spoke directly to opponents, "It benefits not only the worker but the franchisee as well. I remain hopeful the opposition will give this bill a chance to work."