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.
California restaurants and unions have agreed to raise the minimum wage for fast-food workers to $20 per hour, avoiding a potential ballot fight over a previously passed law.
California's landmark fast-food bill, AB 1228, which includes a wage floor of $20 for California workers at fast-food chains with at least 60 locations nationwide, is facing resistance from an independent advocacy group of McDonald's owners who warn that it will be a "devastating financial blow" and cannot be absorbed by the business model.
California lawmakers have passed several labor-related bills, including a statewide minimum wage for health workers, a $20-per-hour minimum wage for fast food workers, and job security measures for semitruck drivers, showcasing the influence of organized labor in the state.
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.
