In a significant development in the food industry, fast-food workers in California are anticipating a potential increase in their pay following some pivotal amendments and negotiations over the 2022 Fast Food Accountability and Standards Recovery Act (“AB 257”). The amendments were made possible through the efforts of California Governor Gavin Newsom and a consortium of fast food companies, which had previously supported a referendum to override AB 257.
In a bid for consensus, the companies collaborated with several labor unions, including the Service Employees International Union. The outcome of these negotiations was an agreement to modify some of AB 257’s most contentious clauses. The new agreement is summed up in a freshly negotiated bill (“AB 1228”).
Significantly, as part of the agreement, the fast-food companies consented to withdraw the referendum initially planned for a vote in 2024. This step could mark a considerable shift toward securing better wages for fast-food workers in California.
Detailing this development, an article on JD Supra provides further insights into the policy changes and corporate processes that underlined this significant negotiation, and what it might mean for fast-food workers across the state. The full implications of AB 1228 on the regional fast-food industry, however, are yet to be fully understood.