New Fast Food Recovery Act Will Not Impact Current Small Food Businesses
On Labor Day 2022, Governor Gavin Newsome approved a new California Labor Law AB 257, The Fast Food Recovery Act that will impact the restaurant industry. The new Assembly Bill establishes a board consisting of 10 political appointees and labor union representatives called the “Fast Food Council” that has regulatory authority over California drive through and counter service restaurants that have 100 restaurants nationwide.
The new law that will be in effect until January 1, 2029, and the council will regulate the following work conditions:
- Minimum wage – limit set at $22 per hour
- Safety
- Training
“We all care for the livelihood of our employees and always want to see their quality of life improve. Luckily, this bill does not affect the small business that we help here at the NEW Women’s Business Center because of their size,” stated Celeste Young-Ramos, Restaurant Consultant at NEW WBC.
California has the largest number of QSR workers in the country at 360,980. Research from the National Restaurant Association shows that quick service restaurants (QSR) employ 3.2% of California’s workforce and accounted for only 1.6% annually of total average wage claims filed with the state Division of Labor Standards Enforcement from 2017-2022.
QSR operators may see labor increases and changes to other rules sometime in 2023 since the new council still has to be formed and then any changes they suggest will take 6 months to institute if they receive the required signatures of 10,000 QSR representatives to ratify.
If you would like help to start up or grow your food service business please contact Msmith@neworg.us. There will be another round of our exceptional 6 Week catering classes lead by Catering Consultant, Elizabeth Mehditach of Café Leza will be starting on October 3rd from 6-8 pm. To enroll: https://neworg.ecenterdirect.com/events/1020347
By Celeste Young-Ramos
Maura Smith
Program Coordinator for the Food Industry
