an hour? New California fast-food wage law worries restaurateurs

$22 an hour? New California fast-food wage law worries restaurateurs

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California Gov. Gavin Newsom (D) signed a bill into law Monday that could raise the state minimum wage for fast-food workers to $22 next year, UPI News reports.

AB 257 creates a “Fast Food Council” of 10 members, jointly appointed by the governor and legislative leaders, that will establish “sector-wide minimum standards” for wages, working conditions and working hours at all restaurant chains with 100 or more locations nationwide. The council can set wages up to $22 in 2023 and raise them each year up to 3.5% depending on the Consumer Price Index. …

The International Franchise Association claims the new law will raise prices for consumers by 20%. “At a time when California restaurants are struggling with skyrocketing inflation in food prices and operating costs, this bill will push many owners closer than ever to shutting their doors in their communities,” NRA executive vice president Sean Kennedy said.

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