California makes a ham-handed attempt to regulate the fast-food industry

Editorial Board
September 13, 2022

A smarter approach would be to increase funding for agencies to enforce the state’s already strong labor laws. This could improve oversight and bolster workers’ rights without inflicting financial and regulatory burdens on small businesses.

California has a habit of pursuing well-meaning policy goals in ham-handed ways. Unfortunately, its new law to regulate the fast-food industry appears to fit the trend. . . .

In a nod to European-style sector-wide collective bargaining, the new law creates a 10-member “Fast Food Council” of employees, franchisees, advocates and government representatives. The council will have the authority to set standards on working hours, conditions — and minimum wages. California’s current minimum wage is $15 per hour for businesses with more than 25 employees, but the council can increase it to as much as $22 in 2023. The law also authorizes counties, or cities with populations of more than 200,000, to create “Local Fast Food Councils,” and it establishes a cause of action for workers facing retaliation or discrimination by an employer. . . .

Meanwhile, other states considering adopting California’s model should listen to concerns from business owners and anxious employees, and find better ways to support vulnerable workers.

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Ad paid for by Save Local Restaurants, a coalition of California small business owners, restaurateurs, franchisees, employees, consumers and community-based organizations. Committee major funding from Chipotle Mexican Grill, In-N-Out Burgers, and Starbucks.