In a potential first for the nation, California’s legislative assembly seems poised to instate a $20 minimum wage specifically for the state’s fast food industry. The move is the result of a deal struck between labor and business entities, which would avert the previously anticipated contentious referendum on the ballot.
According to Fisher Phillips, the arrangement will likely see employers confront a reformed Fast Food Council with less clout than what many had imagined. However, it comes at the price of a compromise incorporated into AB 1228, legislation still requiring approval from the legislature and the governor’s signature.
Whilst details are scarce, what is clear is that the compromise struck within AB 1228’s language will have implications for the state’s fast food enterprises. Rapid transformations and uncertainty in this sphere urges law firms and corporate legal departments to stay vigilant, maintain an understanding of the evolving legal and regulatory framework, and advise clients suitably.
The effects of these changes on businesses, employees, and the economy at large will take time to unfold, and will be closely watched by other states across the country. As this saga develops and new information becomes available, we will stay on top of all relevant legal updates and their implications for corporate law and litigation.