'A devastating financial blow': California's so-called 'draconian' fast-food bill is now law here's why a McDonald's franchisee group says it'll cost small business owners $250K a year (msn.com)
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.
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.
"The new AB 1228 legislation has been voted into law and will result in a devastating financial blow to California McDonald's franchisees at a projected annual cost of $250,000 per McDonald's restaurant," the NOA said in a memo obtained by Fox Business
The group claims that 95% of the 1,300 McDonald's restaurants in California are locally owned and operated by small business owners.
B 1228 applies to fast-food chains with at least 60 locations nationwide except for those that make and sell their own bread. The bill's landmark change is a minimum wage hike to $20 per hour, almost $5 higher than the Golden State's minimum wage of $15.50.
It would also see the establishment of a Fast Food Council to set wages and make recommendations for working conditions. The council has the power to increase the new minimum wage each year through 2029 up to 3.5% or the average change in the Consumer Price Index for urban wage earners, whichever is lower.
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.
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.
"The new AB 1228 legislation has been voted into law and will result in a devastating financial blow to California McDonald's franchisees at a projected annual cost of $250,000 per McDonald's restaurant," the NOA said in a memo obtained by Fox Business
The group claims that 95% of the 1,300 McDonald's restaurants in California are locally owned and operated by small business owners.
B 1228 applies to fast-food chains with at least 60 locations nationwide except for those that make and sell their own bread. The bill's landmark change is a minimum wage hike to $20 per hour, almost $5 higher than the Golden State's minimum wage of $15.50.
It would also see the establishment of a Fast Food Council to set wages and make recommendations for working conditions. The council has the power to increase the new minimum wage each year through 2029 up to 3.5% or the average change in the Consumer Price Index for urban wage earners, whichever is lower.