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California fast-food employees could potentially see an increase in revenue due to a new legislation that was signed by Governor Gavin Newsom on Labor Day. According to CNN, the "Fast Food Council" encompasses wages, working conditions, and number of hours worked per week. The bill could raise the minimum wage for these workers from $15 to $22 an hour, but there are stipulations that need to be maintained first. In order for the pay increase to take effect, the restaurant must employee 26 or more workers. Officials predict the legislation to effect 100 franchise locations throughout the country.
"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," Governor Gavin Newsom shared with CNN. "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."
The International Franchise Association as well as United States President of McDonalds Joe Erlinger have criticized the new legislation calling it "hypocritical" and detailing its negative effect on America's franchise business model.
Despite criticism from large groups, CNN mentioned that One Fair Wage, National Employment Law Project, and Economic Policy Institute are all for the new legislation.