Reference to the CFA’s Advocacy Update from September 1, 2022

Monday, California lawmakers approved Assembly Bill 257, the so-called Fast Recovery Act (FAST Act). The bill will create a new 10-member Fast Food Council with equal numbers of workers’ delegates and employers’ representatives, along with two state officials, empowered to set minimum standards for wages, hours and working conditions in California.

A late amendment would cap any minimum wage increase for fast food workers at chains with more than 100 restaurants at $22 an hour next year, compared to the statewide minimum of $15.50 an hour, with cost of living increases thereafter.

The Senate approved the measure on a 21-12 vote, over bipartisan opposition. Hours later the Assembly sent it to Gov. Gavin Newsom on a final 41-16 vote.  Debate split along party lines, with Republicans opposed, although three Democratic senators voted against the measure and several did not vote.

Restaurant owners and franchisers cited an analysis they commissioned by the UC Riverside Center for Economic Forecast and Development saying that the legislation would increase consumers’ costs. Gov. Gavin Newsom’s administration also fears the measure would create “a fragmented regulatory and legal environment.”

IFA Reaction

Following Monday’s passage of the FAST Act in California, IFA President Matt Haller has done interviews with a number of national and state media outlets to highlight the harm this bill could bring to local franchise businesses and what it means for Californians – and potentially other states should it get signed into law. He appeared yesterday on Fox Business with Neil Cavuto and other mentions throughout the day, NBC Nightly News with Lester Holt on Tuesday evening, as well as CNBC’s The News with Shepherd Smith, after speaking on the bill on NPR in Southern California countering the bill’s sponsor Assemblywoman Wendy Carillo earlier in the day. Jeff Hanscom has also done a number of interviews to share the franchise perspective on the bill, including CalMatters and KFI radio. 

Haller said ““AB 257 is a discriminatory measure designed to target the franchise business model. The bill creates an arbitrary standard for one sector of workers while punishing small business owners and their customers. Franchising has opened the door for hundreds of thousands of entrepreneurs to pursue their dreams and millions of workers to establish a career, but this bill stands to break all that down while raising prices for Californians and forcing restaurants to close their doors. Gov. Newsom should stand up for local businesses, the people of California, and responsible government, and veto this legislation.”