California is supersizing wages for fast food workers

California Gov. Gavin Newsom signed a Democrat-backed bill into law yesterday establishing a new industry-specific minimum wage of up to $22 per hour for all fast food workers in the state. For context, its current minimum wage is $15 per hour.

📝 More deets… The ‘Fast Act’ creates a 10-member council of business, labor, and government representatives in charge of coming up with the new wage, along with other workplace standards for the industry. The legislation also calls for annual minimum wage increases of 3.5% – or the rate of US inflation, whichever is lower.

• Proponents of the law argue the fast food industry has long been plagued by illegal activity like wage theft and other worker abuses, along with tough working conditions where health and safety standards are few and far between.

✋ On the flip side: Republicans and business groups who opposed the law argue that it unfairly singles out the fast food industry, and will increase consumer prices by up to 20% – leading many franchisees to move out of state (or replace workers w/ robots).

👀 Looking ahead… Some industry opponents have discussed organizing a referendum campaign that would seek to invalidate California’s law by putting the issue before voters as early as next year, the WSJ reports.

• Similar fast food-specific minimum wage legislation will soon be introduced in New York, Illinois, Oregon, and Washington, per the National Restaurant Association (aka the other NRA).

📊 Flash poll: Do you agree with California’s Fast Act establishing an industry-specific minimum wage for fast food workers?

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