[US] New law could raise fast food minimum wage to $22

California's governor has signed a bill into law that will create a "Fast Food Council" to determine standards for pay, hours, and working conditions for the state's fast food workers. The restaurant industry, however, has warned that the move could raise fast-food prices, CNN reports.

Under the new legislation, the council could raise the minimum wage for fast food workers to up to $22 an hour; significantly above the $15 an hour the state currently sets for employers with more than 26 workers.

The new standards will apply to chains with at least 100 locations nationally.

"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, " Governor Gavin Newsom - who is also a restaurant owner - said. "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."

But the restaurant industry has spoken out against the law. Last week, McDonald's USA President Joe Erlinger reportedly called the legislation "lopsided, hypocritical, and ill-conceived." He believes the creation of the council will "hurt everyone" because the new standards will apply to large restaurant chains, and not to those with fewer than 100 locations.

The International Franchise Association also objected to the bill, calling it a "discriminatory measure designed to target the franchise business model."

In a statement, IFA president and CEO Matthew Haller said that the bill would hurt smaller franchise operators and pointed to a study that suggested higher wages could lead to 20 per cent increases in menu prices. The National Restaurant Association is reportedly also against the bill.

However, dozens of advocacy groups - including the Economic Policy Institute, the National Employment Law Project and One Fair Wage - are in full support and urged the state to pass the bill in January.

Source: CNN

(Link and quotes via original reporting)

California's governor has signed a bill into law that will create a "Fast Food Council" to determine standards for pay, hours, and working conditions for the state's fast food workers. The restaurant industry, however, has warned that the move could raise fast-food prices, CNN reports.

Under the new legislation, the council could raise the minimum wage for fast food workers to up to $22 an hour; significantly above the $15 an hour the state currently sets for employers with more than 26 workers.

The new standards will apply to chains with at least 100 locations nationally.

"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, " Governor Gavin Newsom - who is also a restaurant owner - said. "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."

But the restaurant industry has spoken out against the law. Last week, McDonald's USA President Joe Erlinger reportedly called the legislation "lopsided, hypocritical, and ill-conceived." He believes the creation of the council will "hurt everyone" because the new standards will apply to large restaurant chains, and not to those with fewer than 100 locations.

The International Franchise Association also objected to the bill, calling it a "discriminatory measure designed to target the franchise business model."

In a statement, IFA president and CEO Matthew Haller said that the bill would hurt smaller franchise operators and pointed to a study that suggested higher wages could lead to 20 per cent increases in menu prices. The National Restaurant Association is reportedly also against the bill.

However, dozens of advocacy groups - including the Economic Policy Institute, the National Employment Law Project and One Fair Wage - are in full support and urged the state to pass the bill in January.

Source: CNN

(Link and quotes via original reporting)