On Labor Day, Governor Newsom signed Assembly Bill (AB) 257, known as the FAST Recovery Act. The Act establishes a Fast Food Council comprising fast food employees, worker advocates, franchisors, franchisees, and government officials from the Department of Industrial Relations and the Governor’s Office of Business and Economic Development. The Council will have the authority to set industry-wide minimum standards for wages, hours, and other working conditions for fast food workers.

Almost immediately, a referendum effort was launched which would give California voters the opportunity to reject the measure. Supporters of the referendum need about 623,000 valid voter signatures by December 4, 2022, to qualify for the November 2024 ballot. If the referendum is successful in getting on the ballot the law would be stayed until the measure is voted on.

In addition to the referendum, there may be legal challenges to AB 257, which may also delay implementation.

In the meantime, covered employers should prepare for the impact of the law if it remains in place.