California Governor Signs Bill to Regulate Fast-Food Industry

Industry groups complained that the bill would raise costs that restaurants would pass on to consumers at a time of rapidly rising prices. They argued that state regulators already had the authority to improve health and safety conditions at fast-food restaurants.

“This bill is a fork in the eye to franchise owners and customers at a time when it hurts most,” Matthew Haller, the president of the International Franchise Association, said in a statement.

But labor groups argued that the bill was necessary to improve conditions for a vulnerable worker population. Many advocates have noted that traditional enforcement relies on workers being willing to come forward with claims against their employers, something fast-food workers are often reluctant to do.

“There are large number of workers in general who are less likely to complain — that means you need to have government play a larger role than it would in other cases,” said David Weil, who under oversaw the agency that enforces the federal minimum wage under President Barack Obama.

Article source: https://www.nytimes.com/2022/09/05/business/newsom-california-fast-food-wages.html