California Fast-Food Dreaming And Inflationary Blues

by | Sep 22, 2022 | Bargaining/Negotiations, SEIU, States

Minimum wage issues keep spiking across our nation with two key developments: (1) California’s new law for fast food workers; (2) seemingly out-of-control inflation:

  • California Governor Gavin Newsom signed Assembly Bill 257 – the Fast Food Accountability and Standards (FAST) Recovery Act – into law. This legislation (propelled by SEIU California and Fight for 15 campaign) creates a Fast Food Council, through which about 500,000 fast-food workers (those who work in chains with 30+ locations in the state) will have the power to bargain. The law will take effect in 2023 and also sets up a $22-per-hour minimum wage. In response, the president of McDonald’s US penned a letter that predicts how the law will eventually wreak havoc upon businesses and franchise owners.

Inflation across the country continues to push up the price of goods, which in turn creates a vicious cycle for everyone. States and cities responded to the crisis by legislating significant increases to their minimum wage, and along with California (which is jumping up to $15.50 per hour, aside from the fast-food bump), Colorado leads the way. Statewide, the lowest paid workers will get a dollar per hour raise (up to $13.64), and in Denver, those workers will reach the $17.29 mark. Expect Arizona, Ohio, and other states to follow suit in 2023. 

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