California passes bill to create government panel to regulate wages for fast food workers

California’s legislature passed a first-in-the-nation bill on Monday to establish a fast food council charged with setting pay and workplace standards for the entire industry.

Assembly Bill 257, also known as the FAST Act, passed the Senate in a 21-12 vote. Hours later the Assembly sent it to Gov. Gavin Newsom on a final 41-16 vote. Newsom has not stated a position on the bill, but his Department of Finance opposes it, saying it would create ongoing costs and worsen delays in the state’s labor enforcement system.

Under the legislation, a 10-member council composed of workers, employers and government appointees would negotiate to set industry standards and pay. It would apply to any fast food chain with at least 100 locations nationwide. The council would set up hourly wages of up to $22 an hour for fast food workers starting next year and can increase them annually by the same rate as the consumer-price index, up to a maximum of 3.5%.

The bill grew out of a union movement to boost minimum wage and led to statewide demonstrations and protests by fast food workers over the last few months. Advocates say such wage theft and other exploitation is common in the industry, particularly for women and racial minorities who make up more than the state’s half-million fast food workers. The bill would give labor advocates a long-elusive bargaining foothold in a low-wage industry that employs more than half a million non-unionized workers statewide.

Fast food companies and franchisee owners continue to lobby against the bill. Among those in opposition include the California Restaurant Association and the International Franchise Association. They note that the state already has strict worker protections and establishing a commission with this power is an overstep. Others also opposing the bill contend it would lead to higher prices, furthering the dangerous inflation that is already striking the economy.

Workers and union leaders in support of the bill were seen rallying in various parts of California in celebration after it passed the Senate, giving emotional speeches in English and Spanish and singing along to mariachi music.