A group of restaurateurs and franchisors said they have gathered enough voter signatures for a ballot measure to overturn a law that would set up a “Fast Food Council” to regulate wages and benefits for fast food workers in the state.
The Save Local Restaurants Coalition—led by the U.S. Chamber of Commerce, the National Restaurant Association, and the International Franchise Association—said Dec. 5 they submitted more than 1 million signatures, exceeding the roughly 623,000 needed to put a measure on the 2024 ballot.
The coalition is pushing back against the Fast Food Accountability and Standards Recovery (FAST) Act, saying the law will cut jobs and raise consumer costs amid inflation.
“The FAST Act would have an enormous impact on Californians, and clearly voters want a say in whether it should stand,” the group wrote in a Dec. 5 statement.
The law would impact any chain with at least 100 locations nationwide, including big-name chains like McDonald’s, In-N-Out, and Burger King, among others.
The effects of the law won’t be limited to just major fast-food chains, the coalition argued, but small businesses as well, since they will be “forced to raise wages and prices to compete for staff.”
Glenn Spencer, Senior Vice President for Employment Policy at the U.S. Chamber of Commerce said in a statement the law will “stifle job growth and increase quick service prices an estimated 20 percent.”
“Even worse, labor organizations supporting the FAST Act have made it clear they don’t intend to stop with California or quick service restaurants but will seek to impose a regulatory regime where government-created boards control how small businesses around the country operate,” he said.
Hundreds of union supporters of the FAST Act protested against the Save Local Restaurants last month, saying the law will offer more than half a million fast-food workers in the state better wages and protection from discrimination and harassment.
The American Federation of Labor and Congress of Industrial Organizations said in a September 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.”
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.
“I remain hopeful the opposition to this bill will give it a chance to work,” Assemblyman Chris Holden, who authored the legislation, said in a September statement after the governor signed it.
The signatures are being sent to the California Secretary of State’s office for verification.
The FAST Act, signed into law by Gov. Gavin Newsom on Labor Day, is set to take effect Jan. 1. But if the referendum qualifies for a 2024 ballot measure, it will be put on hold until then.
