California Gov. Gavin Newsom on Monday signed a bill that could raise the minimum wage for fast food workers up to $22, CNN reports.
The new law will create a “Fast Food Council” charged with setting pay, hours, and working condition standards for fast food employees. The new standards with apply to chains that have at least 100 locations nationwide.
The council could raise the minimum wage for fast food employees up to $22 per hour, well above the state’s $15 minimum wage for companies that have at least 26 workers.
"Today's action gives hardworking fast-food workers a stronger voice and seat at the table to set fair wages and critical health and safety standards across the industry,” Newsom said. "I'm proud to sign this legislation on Labor Day, when we pay tribute to the workers who keep our state running as we build a stronger, more inclusive economy for all Californians."
Restaurants push back:
McDonald’s President Joe Erlinger last week called the bill “lopsided, hypocritical, and ill-conceived."
The International Franchise Association called the bill a "discriminatory measure designed to target the franchise business model."
IFA President and CEO Matthew Haller argued that the bill could cause price increases up to 20% on consumers.
The Service Employees International Union called the bill a “watershed moment in the nation’s labor history, giving more than half a million low-wage workers in the fast-food industry a meaningful voice on the job.”
Assemblymember Chris Holden, the bill’s author, said it would “lift up small business owners and essential workers swiftly with an inclusive approach to business,” resolving “longstanding issues in the fast-food restaurant sector.”