A fight between fast food chains and unions in California is over, for now

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A fight between fast food chains and unions in California is over, for now
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The California minimum wage for fast-food workers is on track to rise to $20 an hour next April.

posted on the company's website, making a rare public statement on a political issue. Erlinger called the bill"lopsided" and"ill-considered," attacking lawmakers for not targeting all restaurants. As of 2022, just under 10% of McDonald's U.S. restaurants were located in California, according to Citi Research. Most are run by franchisees.

Under the bill, franchisors like McDonald's would be held liable for infractions committed by their franchisees. Opponents said that the bill attacked the very nature of the franchising model. AB 1228's provisions were originally included in AB 257 but removed before Newsom signed it into law. Employees of smaller fast-food joints and other restaurants could also reap some benefits from the legislation.

Other states, like Minnesota or New York, could also follow California's lead and craft similar councils to govern restaurants or other industries, Pawlak said.Still, labor's side had to make some tradeoffs to make the deal in California. One key concession is that the council won't have the power to set working conditions. Instead, the Fast Food Council will only be able to recommend proposed standards to state agencies.

On top of that, restaurant chains like In-N-Out now save some cash that otherwise would have gone toward the industry's war chest.

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