California’s Fast-Food Bill Whopper

The Editorial Board
September 2, 2022

Restaurants will almost certainly be forced to raise prices to the extent they can to cover higher labor costs. But most fast-food customers aren’t wealthy, so some restaurants may reduce worker hours or lay off employees.

California is a leading exporter of progressive policy and businesses. So it’s worth paying attention to a bill heading to the Governor’s desk that would let the government fix fast-food worker wages and micromanage restaurants. Sayonara, McDonald’s dollar menu.

The bill passed by the Democratic Legislature this week creates a 10-member council appointed by the Governor and state legislative leaders with nearly carte blanche authority to fix wages, benefits and working conditions at most fast-food restaurants. This is a recipe for higher restaurant prices and lower business and job growth.

The state’s $15 an hour minimum wage is already among the highest in the U.S., but the council could raise it as high as $22 next year and an additional 3.5% every year after that. It could also require that employers provide paid vacation or “protest days” off as some tech companies do. . . .

The economic damage will extend beyond fast food since other businesses such as hotels, retail and food delivery services compete with restaurants for workers. Their extra labor costs will also be passed onto consumers.

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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.