US Markets
Friday, September 15th, 2023 7:01 pm EDT
Key Points
- After California lawmakers passed a landmark fast-food bill, an independent advocacy group of McDonald’s owners is pushing back against what it says will be a “devastating financial blow” to its franchisees in the state, according to a memo viewed by CNBC.
- The bill, AB 1228, was passed by the state Senate late Thursday and heads to Gov. Gavin Newsom’s desk for signature. He has pledged to sign it into law.
- It includes a wage floor of $20 for California workers at fast-food chains with at least 60 locations nationwide, starting April 1.
California lawmakers have passed a bill, AB 1228, which includes a wage floor of $20 for fast-food workers in the state starting April 1. While labor groups pushed for higher wages, the $20 an hour floor prevailed. However, some fast-food franchisees are concerned about the financial impact of this increase, especially given the current labor market and high inflation.
The National Owners Association, an independent advocacy group of McDonald’s owners, estimates that the bill will cost each restaurant in the state $250,000 annually. McDonald’s and other franchisee groups had previously worked to oppose these policies and protect local decision-making for franchise owners. The bill eliminates the threat of joint franchisor-franchisee liability, which was a significant concern for McDonald’s and other franchises.
Read full article here: https://www.cnbc.com/2023/09/15/mcdonalds-advocacy-group-criticizes-new-california-fast-food-bill.html
