Last-Minute Deal Reached on Controversial Fast-Food Bill by Pasadena Assemblymember

Fast-food giants and labor groups have reached a last-minute deal that would give workers a $20 minimum wage starting next April if businesses agree to nix their November 2024 ballot measure to undo a landmark law regulating the industry. 

The agreement was detailed in changes to Assembly Bill 1228, authored by Pasadena’s Assemblymember, Chris Holden.

It now ensures the raise for workers, while the industry gets lawmakers to back off on a key aspect of a controversial proposal to hold fast-food corporations legally responsible for labor violations in their franchise locations. 

In a statement, Holden said AB 1228 represents a path forward to resolve employer community concerns while preserving fast food workers by securing a seat at the table to raise standards.  

“This is a win for fast-food workers and I am proud of the work and collaboration we have channeled to get here,” Holden said. “Together, with both supporters and opposition, we are establishing a new standard that inspires a safe and prosperous environment within the fast food industry.” 

The 2022 law would have established a state-run council with worker and business representatives to write rules regulating wages and working conditions in fast-food restaurants. 

Under the amended law, the Fast Food Council will consist of nine voting members, including representatives of the fast food industry, franchisees, employees, advocates, and one unaffiliated “member of the public,” and two non-voting members. The Council “shall provide direction to, and coordinate with, the Governor and executive agencies, regarding the health, safety, and employment of fastfood restaurant workers,” the bill’s wording said. 

CalMatters reports that the 2022 law was quickly put on hold last fall when restaurant groups and major fast food corporations poured millions into a signature-gathering campaign to have voters repeal it on the 2024 ballot. 

The referendum campaign reported amassing $50 million in “initial contributions” from some big fast-food chains as well as the International Franchise Association and National Restaurant Association.

CalMatters said the Service Employees International Union, a labor union representing almost 1.9 million workers in over 100 occupations in the United States and Canada, sees that the fast-food industry, which employs more than half a million Californians, is in particular need of regulation because of low wages, unpredictable scheduling and “harsh working conditions” in restaurants often controlled not by the corporations but by numerous independent franchise operators. 

The Service Employees International Union and other labor groups have long struggled to unionize the industry.

The last-minute deal, which has to be approved before the legislative session ends Thursday, will require the Fast Food Council convene and meet for the first time by March 15, 2024 – much earlier than it would have if it were to be on the ballot next November.

“Together, with both supporters and opposition, we are establishing a new standard that inspires a safe and prosperous environment within the fast food industry,” Holden said.

Matt Haller, president and CEO of the International Franchise Association, said the deal will provide “meaningful wage increases” for workers while eliminating more significant threats, costs, and regulatory burdens targeting local restaurants.