1851

This Monday, California Gov. Gavin Newsom (D)&nbsp;<a href="https://www.gov.ca.gov/2022/09/02/governor-newsom-signs-legislation-9-2-22/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=newsom-signs-fast-recovery-act-into-law-in-california-2719641" target="_blank" rel="nofollow">signed Assembly Bill 257</a>, or the FAST Recovery Act, into law. The bill aims to provide California fast-food workers and unions more influence over wage rates and workplace standards by including them in a committee that would have the authority to draft state labor rules for fast-food restaurants. The council will include fast-food employees, worker advocates, franchisees and government representatives.<figure class="media"><div data-oembed-url="https://twitter.com/CAgovernor/status/1566818877572464640?s=20&amp;t=M7H3jXBrhO6WCSM8lQzbJw"><div class="iframely-embed"><div class="iframely-responsive"><iframe src="//cdn.iframe.ly/api/iframe?app=1&amp;api_key=fd3b6b3731f34f55ba1fe3&amp;url=https%3A%2F%2Ftwitter.com%2FCAgovernor%2Fstatus%2F1566818877572464640%3Fs%3D20%26t%3DM7H3jXBrhO6WCSM8lQzbJw" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen=""></iframe></div></div></div></figure>“California is committed to ensuring that the men and women who have helped build our world-class economy are able to share in the state’s prosperity,” Governor Newsom said in a&nbsp;<a href="https://www.gov.ca.gov/2022/09/05/governor-newsom-signs-legislation-to-improve-working-conditions-and-wages-for-fast-food-workers/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=newsom-signs-fast-recovery-act-into-law-in-california-2719641" target="_blank" rel="nofollow">press release</a>. “Today’s action gives hard-working fast-food workers a stronger voice and seat at the table to set fair wages and critical health and safety standards across the industry. I’m proud to sign this legislation on Labor Day when we pay tribute to the workers who keep our state running as we build a stronger, more inclusive economy for all Californians.”Newsom’s decision comes despite significant&nbsp;<a href="https://1851franchise.com/fast-food-franchisees-and-workers-gather-in-sacramento-clash-over-californias-fast-recovery-act-2719497#stories">opposition</a> from franchisees, franchisors and small business owners, who argue that this law will result in a rise in menu and labor prices, exacerbated by the highest U.S. inflation rate in decades.&nbsp;The International Franchise Association (IFA) said in&nbsp;<a href="https://www.franchise.org/media-center/press-releases/gov-newsom-sides-with-special-interests-over-local-businesses?utm_source=1851franchise.com&utm_medium=article&utm_campaign=newsom-signs-fast-recovery-act-into-law-in-california-2719641" target="_blank" rel="nofollow">a press release</a> that the law “stands to increase prices as much as 20% at impacted restaurants and harm local businesses, without improving existing worker protections in the state.”The IFA notes that&nbsp;<a href="https://ucreconomicforecast.org/wp-content/uploads/2022/08/WorkerCompensation_Impact_On_Prices_Limited_Service_Restaurant_8_18_2022pdf.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=newsom-signs-fast-recovery-act-into-law-in-california-2719641" target="_blank" rel="nofollow">less than one-third</a> of Californians support the bill and points to a survey by the Employment Policies Institute, which found that&nbsp;<a href="https://epionline.org/app/uploads/2022/08/EPI-Fast-Recovery-Act.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=newsom-signs-fast-recovery-act-into-law-in-california-2719641" target="_blank" rel="nofollow">83%</a> oppose AB 257 due to “deep concerns about the negative impacts of this bill on fast-food industry growth, jobs and price inflation.”“By signing this bill, Gov. Newsom is siding with special interests rather than the people and small businesses of California,” said IFA President and CEO Matthew Haller. “This bill has been built on a lie, and now small business owners, their employees, and their customers will have to pay the price. This bill is a fork in the eye to franchise owners and customers at a time when it hurts most. IFA continues to hear over and over how local franchises do not know how they will be able to make it once this bill goes into effect. Underrepresented communities will be hit hardest.”Ironically, the bill’s author, Assemblymember Chris Holden (D), was actually a long-time Subway franchise owner in the early ’90s. In a&nbsp;<a href="https://www.whec.com/national-world/california-governor-signs-landmark-law-for-fast-food-workers/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=newsom-signs-fast-recovery-act-into-law-in-california-2719641" target="_blank" rel="nofollow">statement</a> last week, Holden asked those in the franchising industry to reconsider their position. “Speaking as a former franchise owner, I would have welcomed this inclusive process, that in reality benefits not only the worker but franchisee as well,” he said.Related articles:<ul><li><a href="https://1851franchise.com/what-the-fast-act-could-mean-for-franchising-2717918#stories">What the Fast Act Could Mean for Franchising</a></li><li><a href="https://1851franchise.com/recent-court-ruling-brings-joint-employer-threat-back-to-franchising-2713838#stories">Recent Court Ruling Brings ‘Joint Employer’ Threat Back to Franchising</a></li><li><a href="https://1851franchise.com/nlrb-finalizes-ruling-to-reduce-joint-employer-liability-for-franchisors-2712391#stories">NLRB Finalizes Ruling to Reduce Joint Employer Liability for Franchisors</a></li></ul>

Newsom Signs FAST Recovery Act Into Law in California

1851 Franchise

The law is designed to increase protections for fast food workers by creating a council to set minimum wage and workplace standards. Still, many argue it could negatively impact the franchise industry at large.

newsom-signs-fast-recovery-act-into-law-in-california

Busy Bee Jumpers

Busy Bee Jumpers Buzzes into Franchising: Three New Franchisees Signed in First 30 Days

busy-bee-jumpers-buzzes-into-franchising-three-new-franchisees-signed-in-first-30-days

Fitness Premier

Fitness Premier 24/7 Clubs Reports Strong Midyear Momentum 

Fitness Premier 24/7 Clubs Reports Strong Midyear Momentum with Revenue Gains, Record Membership, and Strategic Expansion

fitness-premier-mid-year-growth-2025

Woodhouse Spas

image of a woodhouse spa franchise buildings exterior 

Woodhouse Spas Continues Strong Momentum With Double-Digit Growth in Q2

woodhouse-spas-q2-2025-growth-expansion

Layne's Chicken Fingers

Layne's Chicken Fingers-Mountain-State-Devo-June-2025

Layne’s Chicken Fingers Eyes Expansion in Mountain States

laynes-chicken-fingers-franchise-mountain-states-expansion

ServiceMaster Restore

ServiceMaster Restore Powers Into the Second Half of 2025 With Growth and Purpose-Driven Impact

ServiceMaster Restore Powers Into the Second Half of 2025 With Strong Growth and Purpose-Driven Impact

servicemaster-restore-powers-into-the-second-half-of-2025-with-strong-growth-and-purpose-driven-impact

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Photo of Roof Scientist truck and trailer

Roof Scientist Expands Into Northern Indianapolis as Entrepreneur Dale Speckman Launches New Business in Fishers

roof-scientist-expands-into-northern-indianapolis

Image of Donald Trump pointing with red stripes in the background

August 1 Tariff Deadline Is Said to Have ‘No Extensions’: What This Could Mean for Franchises

august-1-tariff-deadline-franchise-impact

What June’s Jobs Report Means for the Franchise Industry

what-junes-jobs-report-means-for-the-franchise-industry

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Drone Delivery Takes Flight in QSR: The Future of Franchise Operations?

drone-delivery-takes-flight-in-qsr-the-future-of-franchise-operations

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

From Corporate Careers to Community Roots: Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

kansas-couple-opens-childrens-lighthouse-gardner-olathe

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery 

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery in Overland Park, Kansas

paris-baguette-franchise-overland-park-khandelwal

Blending Tech, Hospitality and Health Care: How Three Women From Different Worlds Came Together to Build a Paris Baguette Franchise

paris-baguette-franchise-flower-mound-texas

Newsom Signs FAST Recovery Act Into Law in California

MORE STORIES LIKE THIS