Governor Gavin Newsom must have been envious at Joe Biden’s audacity in call his spending blowout bill The Inflation Reducation Act (sic). So Newsom has now gone one better in signing something called the Fast Food Recovery Act (sic), even though economists predict its mandated wage increases will raise consumer costs by up to 20% while driving marginal workers out of the labor market.
The new law creates a 10-member council appointed by the Governor and Democratic legislative leaders with the power to micromanage wages, benefits and working conditions at most fast-food restaurants. The council – none of whom are elected – would be able to raise the state’s minimum wage to as high as $22 an hour next year without any legislative action – a clear evasion of accountability.
The International Franchise Association call the bill “a fork in the eye to franchise owners and customers at a time when it hurts the most.” It would impose joint and several liability on franchisors such as McDonalds for alleged violations by individual franchise owners. Many are likely not to want to bear such liability, and are likely not to open new stores or even close some. Jobs will be lost. Low income families will pay higher prices. This isn’t “progressive” it is regressive.