Fast food giants pour millions into ‘Save Local Restaurants’ coalition to oppose California wage law

Large restaurant chains have seen California’s new fast-food wage law, and they want to cancel the order.

Oppose the state’s ‘Save the Local Restaurants’ coalition quick recoverysaid Friday it has raised more than $12 million with the owners of Burger King, McDonald’s and KFC Yum Brand Among contributors, according to This Wall Street Journal.

Next year, the law may set the minimum wage for fast food at $22 an hour. In California, the minimum wage is now $15 an hour and will increase by 50 cents next year.

According to the alliancethe law “is expected to raise prices by as much as 20% during decades of high inflation and will have cascading effects across the local economy.”

The coalition said it was made up of “small business owners, restaurateurs, franchisees, employees, consumers and community organizations.”

The legislation applies to fast food restaurants with more than 100 locations nationwide. It prohibits companies from retaliating against workers who file complaints.

Opponents of the law hope to gather hundreds of thousands of signatures, shelve the legislation until next year and let voters decide in a referendum whether to block it permanently after that.

Otherwise, the legislation, signed into law by Gov. Gavin Newsom on Labor Day, will go into effect Jan. 1 with a 10-member committee tasked with setting minimum wages for fast food workers, adjusted for inflation.

fast recovery act state: “The purpose of the council is to establish industry-wide minimum wages, working hours and other working conditions related to health, safety and welfare, and to provide the necessary adequate cost of living for fast food restaurant workers.”

After years of trying to represent workers in an industry known for high turnover, low wages and few worker protections, the union pushed for the creation of the committee.

The legislation describes fast-food workers as “the largest and fastest-growing group of low-wage workers in the state” and says the pandemic illustrates “when a disempowered workforce is in a state of failure with a history of not adhering to workplace health.” What happens when the sector faces a crisis and safety regulations.”

In August, a McDonald’s executive describe the bill as “Hypocritical” and “ill-considered”.

“It imposes higher costs on one type of restaurant and reservations on another,” Joe Erlinger, president of McDonald’s U.S., wrote in a statement. “This is true even if the two restaurants have the same revenue and headcount.”

A McDonald’s spokesman told wealth At the time, few companies directly involved in the legislation decided to do so, in part because the bill’s backers saw it as a model that could be implemented in other states.

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