Posted 9/11/2023, 6:44:27 PM

Fast-Food Industry and Unions Reach Deal to Increase Minimum Wage to $20/hr, Averting Costly Ballot Fight

Fast-food companies and unions reached a deal to increase minimum wage to $20/hr in April 2023 and form a council to consider future pay raises, avoiding a costly ballot referendum fight.
The deal was negotiated with help from Gov. Newsom's advisors and allows business groups and labor to avoid a $100M ballot fight over repealing the fast-food wage law.
Under the deal, fast-food companies will pull their referendum trying to reverse the wage law, while unions halt efforts to make franchisors liable for franchisee violations.
The deal includes annual minimum wage increases up to 3.5% and caps local wage increases, while creating a 9-member council to set statewide minimum standards.
The peace agreement comes as Democrats aim to defeat a ballot initiative requiring voter approval for new taxes, focusing resources away from the fast-food fight.

latimes.com

Relevant topic timeline:

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