A Sacramento Superior Court judge Dec. 30 temporarily halted a new California fast food worker law—originally taking effect Jan. 1.
Assembly Bill (AB) 257, also known as the FAST Recovery Act, would establish a government-run, “fast food council” consisting of 10 governor-appointed members, including state officials, representatives of franchisors and franchisees, as well as employees and their advocates.
The council will give workers more power in negotiating wage increases, hours, benefits, and various other terms of employment.
Under AB 257, franchisors would have to ensure their chains adhere to employment, public health, and safety laws that would be collectively liable for penalties if violations are committed in their businesses. This means franchisees would be permitted to file lawsuits against their franchisors should they claim any of the new regulations be 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.
To place a measure on the 2024 ballot to repeal the law, the coalition Save Local Restaurants—the group behind the lawsuit—began collecting signatures in September and needed 623,000 signatures by Dec. 4. The group reported Dec. 5 they had gathered over a million signatures.
The same week, the Secretary of State notified county elections officials enough signatures were submitted to trigger the signature verification process and make AB 257 ineffective before the process is completed.
But the Department of Industrial Relations said in a letter to the coalition they intended to move forward with the law beginning in January regardless, which was countered by the group’s lawsuit.
The group said in a statement Dec. 30 that the judge’s decision “keeps intact for the time being California’s century-old referendum process” and “protects the voices of over one million California voters who exercised their democratic right in asking to vote on a piece of legislation before bearing its burden.”
According to the California Constitution, the right of a referendum prevents a law from going into effect unless and until it is approved by voters.
If enough signatures are verified by Jan. 25, the law will appear on the 2024 ballot.
In the order, Judge Shelleyanne W.L. Chang wrote that the law was halted “in light of the incredibly short timeframe provided to the Court to hear this matter.”
A hearing is set for Jan. 13 for the court to decide whether the law will continue to be on hold.
“If you are a small business owner running two restaurants that are part of a national chain, like McDonald’s, you can be targeted by the bill,” he added. “But if you own 20 restaurants that are not part of a large chain, the bill does not apply to you. … This is a clear example of picking ‘winners’ and ‘losers,’ which is not the appropriate role of government.”
Hundreds of union supporters of AB 257 protested against the Save Local Restaurants initiative last November, saying the law will offer more than half a million fast-food workers in the state better wages and protection from discrimination and harassment.
Assemblyman Chris Holden (D-Pasadena), the primary author of the bill, said on the Assembly floor last year “fast-food workers often experience wage theft, harassment, and unsafe workplace conditions that have been intensified by the pandemic.”
The American Federation of Labor and Congress of Industrial Organizations said in a September 2022 statement that the law “guarantees that fast-food workers get a seat at the table on the Fast Food Council, ensuring they have a voice in determining their working conditions and pay.”
Prior to AB 257, California already has the most comprehensive labor protection in the country, with a series of laws regulating work hours, legal holidays, and whistleblower complaints, among other areas of employment.
