The Sacramento Superior Court ruled in favor Jan. 13 of a coalition of restaurateurs and small businesses seeking to stop the implementation of the Fast Food Accountability and Standards Act—known as the FAST Act—until signatures on a petition, which would put the issue before voters to possibly overturn the law, are verified.
The law, which was signed by California Gov. Gavin Newsom on Labor Day in 2022 and was to have gone into effect on Jan. 1, establishes a government-run 10-member council including state officials, representatives of franchisors and franchisees, as well as employees and their advocates, appointed by the governor.
The council was given the power to set wages for fast food workers in the state, with the goal to give workers more power in negotiating wage increases, hours, benefits, and various other terms of employment.
Previously, a group called the Save Local Restaurants Coalition gathered over 1 million signatures from California voters, which, if verified, would seek voter input in 2024 if the law should remain.
The California Secretary of State expects to have the signatures verified by Jan. 25. At least 623,000 signatures must be verified.
The court’s “decision protects the rights of over one million California voters who demanded their say on this law before bearing its burden,” the Save Local Restaurants Coalition said in a statement to The Epoch Times. “We appreciate the Court upholding the state’s 100-year-old referendum process as well as the well-established legal precedent that ensures California voters are able to consider the laws passed by their legislature.”
Under the law, franchisors must ensure their restaurants adhere to employment, public health, and safety laws determined by the council and would be collectively liable for penalties for violations in their businesses.
This means franchisees would be permitted to file lawsuits against their franchisors should they claim any of the new regulations were breached.
The council’s regulations would directly impact chains with at least 100 locations nationwide, including big names like McDonald’s, In-N-Out, and Burger King, among others.
McDonald’s USA President Joe Erlinger said in an open letter last August California’s approach “targets some workplaces and not others.”
“It imposes higher costs on one type of restaurant while sparing another,” he said.
