Under this law, the council could raise the minimum wage for fast food workers to $22 an hour. That’s well above the $15 hourly wage for her state employer with more than 26 employees.
The new standards apply to chains with at least 100 locations nationwide.
Gov. Gavin Newsom, who also owns the restaurant, said, “Today’s action gives hardworking fast food workers a stronger voice and a seat for setting fair wages and important health and safety standards across the industry. “We are proud to sign this act on Labor Day to honor the workers who are building a stronger and more inclusive economy for all Californians and keeping our state running. .”
However, the restaurant industry has spoken out against the law. Last week, McDonald’s U.S. president Joe Erlinger called the legislation “biased, hypocritical and poorly thought out.” He believes the creation of the council would “hurt everyone” because the new standards apply to large restaurant chains and not to those with fewer than 100 locations.
The International Franchise Association also objected to the bill, calling it a “discriminatory measure targeting the franchise business model”.
IFA president and CEO Matthew Haller said in a statement that the bill would hit smaller franchisees, saying higher wages could lead to a 20% increase in menu prices. He pointed to studies that suggest that The National Restaurant Association is also opposing the bill.
But dozens of advocacy groups, including the Economic Policy Institute, the National Employment Law Project, and One Fair Wage, urged states to pass the bill in January.