AB 257: New Law Impacting Fast Food Restaurants

On September 5, 2022, Governor Newsom approved Assembly Bill 257 (“Bill”) that will establish a Fast-Food Council that will be composed of 10 members. The Bill will establish a sector wide minimum standards on wages, working hours, and other working conditions to fast food workers. The purpose of this bill is to protect fast-food workers since for years, they have been subject to low pay, few benefits, minimal job security and even abuse.

The Bill’s approval was not as welcomed by fast-food restaurants as expected. Many restaurants believe the Bill will work against them adding additional costs that are not necessary, especially during the time of a pandemic, where there are increased prices due to supply chain delays and worker shortages. Even some fast-food employees who have been able to use Covid-19 to their advantage to receive a pay increase are worried their hard work and what they’ve gained will be lost if the Fast-Food Council is put into place.

A coalition of restaurants opposing the Bill filed a referendum in hopes of halting the new law while they collect signatures in order to place the issue of the establishment of the Fast-Food Council before California voters. Their hope is to delay the Bill until 2024 when it can be officially voted on.

To stay up to date on the status of this Bill and new employment law updates for 2023, contact the Employer Lawyers at Chauvel & Glatt.  

This material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute legal advice.  For information on your particular circumstances, please contact  Chauvel & Glatt at 650-881-2476 for legal assistance near you.

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