A compromise has been reached between Silicon Valley fast-food workers and restaurant owners through a state bill, Assembly Bill 1228, which is now headed to Governor Gavin Newsom’s desk. This legislation resolves a stalemate over fast-food labor policies, which had led to a lawsuit and a planned referendum for the March 2024 ballot.
Under AB 1228, the following provisions will come into effect:
Fast-food worker wages will increase to $20 per hour starting in April.
A nine-member Fast Food Council will be established to monitor the industry.
The referendum planned for the 2024 ballot will be withdrawn.
Last year’s bill, the FAST Recovery Act (Assembly Bill 257), will be repealed.
SEIU (Service Employees International Union) will withdraw a bill holding fast-food franchisors legally liable for labor violations committed by their franchisees.
This compromise effectively replaces AB 257, which had sought to create a 10-person council and set the minimum hourly wage at $22 starting this year. AB 257 faced opposition from a coalition called Save Local Restaurants, which included the International Franchise Association and the National Restaurant Association. Franchisees argued that the increased pay and additional regulatory burdens would make it difficult to stay in business. The coalition collected over 1 million signatures for a referendum to repeal AB 257.
Laura Reyes, an employee at a Burger King in San Jose, expressed that the wage increase will help workers better provide for their families.
