California Passes Bill That Will Transform The Fast Food Industry, Raising Wages And Creating New Protections

Newsom took to Twitter to celebrate the momentous news.

On #LaborDay, we pay tribute to the workers across our state who keep our economy running.

With this bill by @ChrisHoldenNews, we’re helping give fast food workers the stronger voice they should have had long ago – a say in shaping workplace standards and their jobs. pic.twitter.com/Mk2kf1QGkT

— Office of the Governor of California (@CAgovernor) September 5, 2022

According to Newsom’s official website:

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AB 257, the Fast Food Accountability and Standards Recovery Act by Assemblymember Chris Holden (D-Pasadena), authorizes the creation of the Fast Food Council comprised of representatives from labor and management to set minimum standards for workers in the industry, including for wages, conditions related to health and safety, security in the workplace, the right to take time off from work for protected purposes and protection from discrimination and harassment.

California is committed to ensuring that the men and women who have helped build our world-class economy are able to share in the state’s prosperity.

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. 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.

Newsom stated

Members of the Fast Food Council at the Department of Industrial Relations will include fast food workers and their advocates, franchisees, franchisors and representatives from the Governor’s Office of Business and Economic Development and the Department of Industrial Relations. 

For full text of the bill, visit: http://leginfo.legislature.ca.gov

Under the Newsom Administration, California has made important strides to support workers and advance workplace safety. Last year, the Governor signed legislation to protect warehouse workers from unsafe production quotas and nation-leading legislation to end exploitative piece-rate compensation for garment industry workers. The Governor also signed a measure directing Cal/OSHA to create an advisory committee to recommend state policies to protect domestic workers and a bill to ensure that workers with disabilities are paid a fair wage. In 2019, the Governor signed legislation giving child care workers the right to join a union and collectively bargain with the state.

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A week ago when the bill was passed by state legislators, awaiting Newsom’s signature, Brianna Wellen for fast-food news outlet The Takeout explained how this bill would effect the industry all over the country, while addressing some of the complaints and skepticism of the bill.

She wrote (excerpts):

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Opponents to the bill warn that this will cause product prices to go up, something that I humbly point out is happening anyway because of inflation while the minimum wage remains the same.

Another fear expressed by the opposition is that the bill, as Republican Senator Brian Dahle tells the AP, is a “steppingstone to unionize these workers.” Considering that the bill grew out of a union movement, I’d venture to guess that that’s entirely the point. The council will not supersede any union and other organizing efforts but rather work in tandem with them, providing a direct line to legislators with the power to change laws around things like working conditions and minimum wage.

And it’s not just politicians who are against it. Restaurant owners and franchisees have been vocal about concerns of rising costs affecting their bottom lines. According to Insider, International Franchise Association president Matthew Haller has been warning other restaurant owners that this will inspire similar legislation to pop up in other states—of course, supporters of the bill are hoping that it does.

We’ve already seen how quickly the Starbucks union wave swept the nation after one Buffalo, New York store became the first to unionize late last year—now there are 200 unionized stores across the country. All people need is one example of how it can work, one roadmap and jolt of inspiration to try forming a union for themselves. The FAST Recovery Act is poised to do the same for fast food regulation legislation.

When the fast food industry is regulated and working conditions are improved, that trickles down to the consumer. For example, many complaints revolve around workers being forced to come in for their shift even if they’re sick—those germs can easily be spread to the food you’re about to eat. Workers who are taken care of are in a better position to put all necessary care into the food and drink they’re making and the service they offer. Stores with workers who aren’t burned out from being understaffed won’t have to close their doors because lack of staff.

With more fast food councils representing other states (plus major cities and counties within those states) we’ll be able to gain a more comprehensive and realistic look at the current state of the industry nationwide. AB 257 outlines why it’s necessary to hear from the workers themselves:

Numerous complaints filed by fast food workers with state and local health departments illustrate that many fast food operators routinely have flouted protections, including, but not limited to, failing to provide adequate protection against workplace violence, requiring workers to work without access to personal protective equipment, denying workers sick pay, failing to inform workers of exposure to COVID-19, actively hiding COVID-19 cases, and demanding that workers come to work when they are sick.

Despite corporate profits, fast food workers are poorly positioned to participate in a fast recovery and a more equitable economy, one that reflects improved job quality, wages, and working conditions, responsible use of technology, and modernized worker protections.

A snippet from the bill

Once this bill is officially passed, it’s only a matter of time before other states do the same to protect fast food workers and give them a seat at the table where decisions about their industry are being made. As with any change, there may be some hiccups along the way, but it’s a step in the right direction for offering protection, appropriate compensation, and respect to some of the hardest working people out there. And on top of it, your burger and fries will taste better than ever.

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AUTHOR COMMENTARY

[13] And he said unto them, Exact no more than that which is appointed you. [14] And the soldiers likewise demanded of him, saying, And what shall we do? And he said unto them, Do violence to no man, neither accuse any falsely; and be content with your wages.

Luke 3:13-14; John the baptist speaking

In early in 2021 I reported on a statement by the TGI Fridays CEO, who gave his opinions on what a higher minimum wage would mean for not just his franchise, but all the others. The minimum wage was at $7.25 at the time. Very simply, he said a base pay rise to $15 an hour would result in lesser hours of operation, and higher costs for the customer. He pointed out that kitchen staff were already making more than $15, but the rub came in at paying wait staff a higher wage.

In the front of the house, where we spend a lot of hours, we would clearly be cutting back hours if something that dramatic happened. And we’d have to materially raise prices, which doesn’t feel like that would be right.

If the cooks are making $15 to $18 an hour and then suddenly the waitresses are making $40 an hour, that doesn’t make any sense to me.

CEO Ray Blanchette said

Since then, as we know, minimum wages have risen in many states. Currently 30 states offer more than $7.25, with only 2 offering less than the baseline.

But what California will do will not doubt bleed into many more states. If nothing else, it will at least coerce other states to nudge their minimum wages higher, or for that industry.

As I noted in my report about the Fridays CEO in January, 2021, restaurants and the hospitality sector were decimated by the lockdowns – already on the downward spiral since ’08. Here in my area of Northern Indiana, not too far from the University of Notre Dame in South Bend, Indiana; there is significantly less traffic at night any day of the week, including Fridays and Saturdays. Shops and restaurants are closing much sooner, they look like they are falling apart, the staff everywhere looks like they just rolled out of bed, and even some eateries like Applebees (in my area) has had to close for entire days due to lack of staff; and, not surprisingly, prices have screamed higher.

Fast Food Restaurant Prices Inflate

California’s move to vastly increase wages, hand out tons of benefits, and essentially unionize, will accelerate the restaurant’s and dining industry’s demise. Workers out, robots in:

• Wingstop Unveils “Restaurant Of The Future.” Cashless Restaurant Without Tables
• Restaurant Replaces Waiter With Robot
• AI Company Receives Millions In Funding To Completely Automate Restaurants And Study Customer’s Habits

When tipping a waiter/waitress, most restaurants collect all those tips in a pool and then evenly disperse those tips amongst the staff. I personally think that is so stupid. At that rate, you might as well just raise the baselevel pay to at least $10 and scrap tipping; or, give them a decent wage, and then the waitress keeps all her tips. If she wants higher tips, work harder and do a better job: that incentivizes everyone to compete. Experience and ambience goes up, better tips, happier staff, returning customers: what a concept.

Woe unto him that buildeth his house by unrighteousness, and his chambers by wrong; that useth his neighbour’s service without wages, and giveth him not for his work;

Jeremiah 22:13

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[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).

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