Home » US business news • US Employment News » California fast food operators fight bill to set minimum wage for staff

California fast food operators fight bill to set minimum wage for staff

By Hugh Fort in US business news, posted August 31, 2022

Fast food operators and restaurant owners in California are fighting to veto a bill to increase their staff's minimum wage.

The Wall Street Journal reports business owners fear increased costs and the setting of a precedent other states and cities might follow.

Franchise owners are concerned about having to take on the cost of a minimum wage that could be as much as $22 an hour starting in 2023.

The move would include chains that operate their own restaurants like Starbucks and Chipotle.

Groups will campaign and speak with Democrat governor Gavin Newsom in an attempt to veto the bill.

Jot Condie, president of the California Restaurant Association, said: "Every resource at our disposal will be used to ensure our entire membership is asking the governor to veto this bill."

He said he fears the wage-setting council's authority could later be expanded beyond the fast-food industry.

The bill is called the Fast Act and passed California's Legislature on Monday, August 29.

It is backed by labor unions, who say it could create a model for fair wages and other protections for hourly workers.

Mary Kay Henry, president of the Service Employees International Union, said: "We want California to be the first in the nation as it is in so many fronts, and to be able to spread this to other states.

100 union members rallied outside the state capitol ahead of the vote chanting "sign the bill."

Need Career Advice? Get employment skills advice at all levels of your career

Newsom has until September 30 to decide on whether to sign the bill.

California's current minimum wage is $15, set to increase to $15.50 on January 1.

An email seen by the Wall Street Journal from the group's leaders said: "All of us have a stake in this.

"It would utterly devastate the businesses of our owner/operators in California and could set a precedent for other states to introduce similar legislation."

The bill would also create an unequal playing ground because it would apply to larger restaurant chains and not smaller ones, they wrote in the email.

Follow us on YouTube, Twitter,LinkedIn, and Facebook