Is California’s Fast Food Fight Restarting?

The deal came together in the Legislature’s final week last year, a complex bill that raised the minimum wage for fast food workers and that pulled an industry referendum off the 2024 ballot.

But now there are noticeable signs that the political fight between labor and industry is starting up again, CalMatters Capitol reporter Jeanne Kuang explains.

Republicans in the Legislature are on the warpath against the new law giving fast food workers a minimum wage of $20 an hour in April, calling for Gov. Gavin Newsom to be investigated over his dealings with a Panera Bread franchisee who is a major campaign donor. Newsom denies any impropriety and his office now says that Panera and other bakeries won’t be exempt from the wage hike.

Not only that, but some McDonald’s franchise owners organizing under a political action committee have launched opposition campaigns against legislators who supported last year’s deal and are seeking public offices in the primary election. Among their targets: Democratic Assemblymembers Chris Holden of Pasadena and Kevin McCarty of Sacramento.

Some franchise owners and restaurant companies have also registered this year to lobby in San Jose, where a newly formed fast food workers union is seeking a city ordinance that requires employers provide paid time off and predictable schedules. Recently, the union has accused City Councilmember Dave Cohen for reconsidering his support of the ordinance due to industry influence, which Cohen denied.

Franchise owners haven’t spent as much money campaigning this year compared to the tens of millions of dollars fast food giants have spent in recent years pushing back against state regulation. But their recent activities indicate that owners — who have argued they were excluded from last year’s deal-making — are ramping up their involvement. Said one San Jose franchisee: “Businesses are going to speak up.”

Read more about the fast food deal in Jeanne’s story.

Fast food council: Another key part of the deal is a first-in-the-nation council that will set work rules for fast food restaurants, but it’s unclear whether business and labor representatives can agree. On Friday, Newsom announced his seven appointees to the council, including Chairperson Nicholas Hardeman, chief of staff to state Senate leader emeritus Toni Atkins. Hardeman will play a key role in trying to forge consensus — and could be the tie-breaking vote.

Newsom’s other picks are a mix of franchisees, workers and others: SG Ellison, CEO of Diversified Restaurant Co.; Piardip “Joe” Johal, CEO of Wendy’s of the Pacific; Michaela Mendelsohn, president and CEO of Pollo West Corp; Anneisha Williams, labor activist and a shift leader at Jack in the Box; Angelica Hernandez, a cook trainer at McDonald’s; and Richard Reinis, partner at Thompson Coburn LLP.

Legislative leaders have made the other two selections: Maria Maldonado, statewide field director of the California Fast Food Workers Union, and Joseph Bryant, an international executive vice president of the Service Employees International Union.

Labor scorecard: The fast food deal was a capstone to one of the union movement’s most successful legislative sessions in years. So it isn’t a shock that the California Labor Federation awarded 100% to a record 36 of 120 legislators in its 2023 scorecard, up significantly from 16 lawmakers in 2022. The federation includes 1,300 unions with more than 2.3 million members.

• Lorena Gonzalez, federation leader, in a statement: “2023 was truly a historic year for working Californians and their unions. The tremendous support we saw on the picket line and in our communities spilled over to our Legislature, as our elected representatives championed worker priorities.”

Newsom, however, received only a 70% score, down from 88% in 2022. Among other black marks from labor’s point of view, he vetoed a bill to grant unemployment benefits to striking workers.

CalMatters.org is a nonprofit, nonpartisan media venture explaining California policies and politics.