Ten years after the launch of the Fight for $15, fast-food workers nationwide are still grappling with low and stolen wages, unsafe workplaces, and rampant sexual harassment. California lawmakers now are considering a bill to address those problems, aimed at improving conditions for the more than 550,000 fast-food workers in the state.
The bill, known as AB 257 or the FAST Recovery Act, passed the California Assembly in January, and is coming up for a full vote in the state Senate this month. “There may be no more consequential measure for labor rights in Sacramento this session,” said LA Times columnist Michael Hiltzik. Its impact though, might not be limited to California.
The legislation would establish a new state council with the power to set minimum working standards for fast food restaurants across California. It would also create a means to hold companies like McDonald’s and Pizza Hut legally responsible for any labor violations at individual stores, even if those individual stores are owned by franchisees. Right now, big corporations are generally not liable for their franchisees breaking labor laws.
In many European countries, unions negotiate working standards that apply to workers across an entire industry, not just one company. This approach, known as “sectoral bargaining,” is particularly useful for protecting workers toiling in industries that rely heavily on part-time staff, contractors, and subcontractors. Sectoral bargaining is prohibited by federal labor law in the US, but the bill in California is a similar idea, and a step that a labor-friendly state can take on its own.
Food industry and franchise trade groups certainly recognize the threat the FAST Recovery Act presents to their business model, and the national implications if it becomes law.
“If passed, also expect to see similar legislation in states like New York, Oregon, Washington, Illinois, and more,” warns lobbying materials from the National Restaurant Association. “The greatest chance for defeating this legislation is in the California Senate, making it imperative for the industry to focus its efforts there.”
Unions and labor allies, in turn, have been advocating hard for the bill — organizing worker strikes, petitions, and lobby trips to Sacramento and Washington, DC.
In June, presidents from America’s largest national unions sent a letter to Democratic Gov. Gavin Newsom urging him to “support and champion” the FAST Recovery Act. “This bill is an opportunity to connect policy with your progressive values and demonstrate that California knows how to lead the nation with innovative solutions that tackle rising inequality,” they wrote.
Newsom, who is rumored to have 2024 presidential ambitions, vetoed a big labor bill last year that would have made it easier for California farmworkers to unionize. Omar Rodriguez, a spokesperson for Newsom, told Vox they don’t typically comment on pending legislation: “The governor will evaluate the bill on its own merits if it reaches his desk,” he said.
Kate Andrias, a labor law professor at Columbia University who has written about sectoral bargaining, told Vox that she sees the FAST Recovery Act as “a significant step forward.” “There are ways in which workers can influence wages and regulations already, but what this bill does is create a focal point for workers to be a more empowered part of the administrative system,” she said.
How the FAST Recovery Act would work
The law would establish a 13-member council that includes political appointees from state health and labor agencies, as well as food industry officials, fast food workers, and union representatives. The council would “promulgate minimum standards” for things like wages and working conditions for restaurants where workers aren’t unionized. The bill would also clarify joint liability for the franchisor and franchisee, and establish protections for workers who exercise their rights.
The standards would apply to any chain in California that has at least 30 stores nationwide that share a common brand.
Only six votes from the council are required to issue a rule, which means even if all four direct representatives from the business community reject it, the measure could still pass. The California legislature would have an opportunity to reject or change the council’s proposed standards, as would the state’s Occupational Health and Safety Administration.
California’s AB257 could be a game-changer for how fast food workers are treated in the workplace. The fast food industry’s workers, who are often women and/or people of color, face unsafe workplace conditions, wage theft, and rampant sexual harassment.