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Restaurant Operators in California Opposing Minimum Wage Law

01/02/2023

In September, Governor Gavin Newsom (D) signed into law the FAST Recovery Act.  This legislation established a 10-Person Council representing workers, employers and unions to establish minimum wages for approximately a half million fast-food workers.

 

The law was supported by organized labor and extended rights relating to schedules and work environments in addition to a minimum wage rate with annual increases based on inflation.

 

Opposition to the law is headed by a restaurant association entitled "Save Local Restaurants".  The group has submitted a petition with one million signatures, more than the 623,000 required, to place the law on the ballot in 2024.  In the interim, Save Local Restaurants has filed a lawsuit in the California Superior Court enjoining the state Department of Industrial Relations from enforcing the provisions of the law.

Save Local Restaurants has issued statements that the law would lead to staff cuts, closure of fast-food locations and raise menu prices.  Companies supporting the ballot initiative include McDonald's Corp, Starbucks Corp, YUM Brands Inc, Chipotle Mexican Grill and numerous local chains.