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IPFS News Link • California

'A devastating financial blow': California's so-called 'draconian' fast-food bil

•, by Bethan Moorcraft

California Governor Gavin Newsom smiled as he delivered the news amid a throng of cheering workers and labor leaders.

The Democratic leader had just signed into law a bill to increase wages for fast-food workers across the state.

The new AB 1228 legislation, or the Fast Food Franchisor Responsibility Act, will give fast-food employees in California the highest guaranteed base pay in the industry nationwide.

"This is a big deal," Newsom exclaimed during a press conference in Los Angeles on Sept. 28. "What a remarkable moment."

Meanwhile, the National Owners Association (NOA), a group that represents more than 1,000 McDonald's franchise owners, has slammed the landmark bill for its "draconian" rules.

In addition to the minimum wage increase for fast-food workers, which comes into effect April 1, 2024, the bill also establishes a council that can approve further wage increases in the future.

However, the NOA says the law would introduce costs that "simply cannot be absorbed by the current business model."

The group claims that 95% of the 1,300 McDonald's restaurants in California are locally owned and operated by small business owners.