Fast food prices could soon be on the rise following a bill signed into law by California Governor Gavin Newsom that will now create a "Fast Food Council," which will set standards for pay, working conditions, and hours for employees in the industry.
Those within the restaurant industry have warned that prices could skyrocket due to the potential spike in pay, as the council could raise the minimum wage for a fast food worker to $22 an hour.
The current minimum wage for an employee in the state is $15.50 an hour, but only for companies with more than 26 workers.
Under the new council, the standards it determines will only apply to chains that have at least 100 locations nationally.
Newsom, a restaurant owner himself, shared in a statement that the law will now give workers more input into their working conditions.
"Today's action gives hardworking fast-food workers a stronger voice and seat at the table to set fair wages and critical health and safety standards across the industry," Newsom said. "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."
But, not everyone is a fan of the move by Newsom.
Joe Erlinger, the President of McDonald's USA, called the legislation is "lopsided, hypocritical, and ill conceived."
Erlinger said he thinks that everyone will be "hurt" by the council as the new standards will apply to large restaurant chains.
California Assemblyman Chris Holden (D-Pasadena) authored the bill and called it "a new way to ensure marginalized workers have a voice in the workplace."
Matthew Haller, the president and CEO of the International Franchise Association, called the new law a "discriminatory measure designed to target the franchise business model," noting that the pay increases will hurt small franchise operators.
"This bill has been built on a lie, and now small business owners, their employees, and their customers will have to pay the price," Haller said in a statement. "Franchises already pay higher wages and offer more opportunity for advancement than their independent counterparts, and this bill unfairly targets one of the greatest models for achieving the American Dream and the millions of people it supports."
Haller noted a study that said wage spikes could increase prices by as much as 20%.
There are people on both sides of the argument, including the National Restaurant Association, which is against the bill, and the National Employment Law Project, which is for it.
Either way, the landmark law will create a 10-member council comprised of an equal number of workers' delegates and employers' representatives. In addition, two state officials will also sit on the council.
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