McDonald's Franchisees Cry Foul Over California's New Fast Food Labor Law

The National Owners Association called California's AB 1228 law "draconian" and costly for McDonald's franchisees in a memo, projecting $250k in extra costs per store.
The law raises minimum wage to $20/hr for fast food chains with 60+ locations and creates a 10-person council to govern chains.
The NOA memo alleges some franchisors negotiated with the SEIU union without involving franchisees.
McDonald's said the final AB 1228 bill was improved from prior versions and worked with a task force of franchisees.
McDonald's is establishing a team to pilot solutions for California using best practices from similar legislation elsewhere.

foxbusiness.com

Relevant topic timeline:

9/11/2023

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

Fast-food companies in California have agreed to remove a referendum from next year's ballot that aimed to reverse a worker-protections law, resulting in an increase in the minimum wage for fast-food workers to $20 an hour in April and the creation of a new council to consider future pay bumps.

9/12/2023

California Groups Reach Deal to Raise Minimum Wage to $20/hr, Averting Ballot Fight

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California Raises Minimum Wage for Fast Food Workers to $20/hr by 2024, Despite Industry Concerns

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9/19/2023

McDonald's Blasts California's New Fast Food Law, Claiming 'Draconian' $250K Costs Per Store

A group representing McDonald's franchise owners in California criticizes the state's fast food bill, saying it will cost small business owners $250,000 per year and could lead to the shutdown of locally owned restaurants and loss of jobs.

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Posted 9/15/2023, 11:38:22 PM