The FAST Act, or Fast Food Accountability and Standards Recovery Act, has sparked a strong response after it was passed by the California State Legislature on Monday.
The National Food Association released a statement late Tuesday suggesting the bill would not “achieve its goal of providing a better environment for workers.” Instead, “it will force an outcome that our community does not want to see,” said Michelle Korsmo, president and CEO of the Association.
“Rarely does the state legislature pass a bill that would hurt small businesses, their workers and their customers, but California’s FAST Act does,” he added. “Even the Governor’s Department of Finance himself said AB 257 will increase costs. This comes at a time when inflation is so high and families are struggling every month.”
At its core, the Fast Track Act would create a 10-member council appointed by the governor, the speaker of the assembly, and the Senate Rules Committee. Two fast food franchisors, two franchisees, two labor rights attorneys, one representative from the Department of Industrial Relations, and one from the Governor’s Office of Commerce and Development- before the Economy, they would also fill the seats. Additionally, cities and counties can create local fast food councils to address local issues.
READ MORE: President McDonald says bill “should raise alarm bells” across the country.
At the heart of the Act is the panel’s ability to control effective wages quickly. They could raise the minimum wage to $22 an hour by 2023 and 3.5 percent annually thereafter. Currently, the wage in California is set at $15 and is expected to reach $15.50 at the beginning of next year.
“For restaurant workers, the FAST Act threatens businesses that are already struggling with a 16 percent increase in food retail prices and continued supply challenges. In fact, 45 percent of California restaurant workers report that their business conditions are worse today than they were three months ago,” Korsmo said, referring to a study conducted by the Association recently. In the survey of more than 4,200 workers conducted from July 15 to August 5, the majority of restaurants said they do not expect to return to normal in the foreseeable future, with 41 percent saying it will take more than year, and 12 percent said. 7-12 months. About 30 percent felt that business conditions may never return to normal.
And in Korsmo’s view of the costs, a large number of the rates mentioned were higher than the total before the epidemic; 88 percent cited food and beverage costs, 86 percent for staff, 65 percent for lodging, 80 percent for equipment, and 94 percent for operation. To reduce these problems, 91 percent said they increased opportunity costs. Overall, according to federal data, restaurant menu prices rose 7.6 percent in July, year over year. That’s slightly below June inflation, but still close to a 40-year high. The price of full-service meals rose 8.9 percent, while prices for quick-service options increased by 7.2 percent.
This while grocery prices rose 13.1 percent in July – the biggest difference between restaurants and the sector since the 1970s.
Meanwhile, other common pressures have emerged since the onset of COVID. Development projects have slowed due to rising construction costs and lead times, as well as labor issues. This also leads to reduced working hours for some.
Data from the UC Riverside School of Business said minimum wages set between $22 and $43 would raise labor costs by 60 percent and increase prices by 20 percent.
The industry added 74,100 jobs in July and now boasts 11.7 million people. That’s more than 600,000 short jobs in February 2020.
About 24 percent of workers in the Association’s survey said they had added more technology to combat high winds, and 16 percent had been forced to cut back on human transportation to save costs. . About 85 percent added that they have less money compared to 2019.
The BLS estimated that hourly wages for food workers rose at a double-digit pace through April 2021 before returning to 9 percent in June. Average hourly earnings fell in July for the first time since May 2020 (down 0.16 percent). However, they are about 8 percent higher than the annual rate.
In June 2022, there were 1.304 million job openings in the lodging and food services field and 1.004 million employed. There were 918,000 shares.
“Nine out of 10 restaurants are small businesses that employ fewer than 50 people,” Korsmo said. “This bill sends a clear message that the state legislature does not understand the importance of these workers to small business owners who operate not only restaurants, but also bakeries, juice bars, pizzerias, delis, salad shops and more quickly. -service centers that Californians depend on. It’s these local businesses that provide people with first jobs, job opportunities and support their communities.”
President and CEO of the International Franchise Association Matthew Haller also took an aggressive stance against the Act. He called it “a discriminatory measure designed to target the franchise business model.”
“The bill creates an unfair environment for one segment of the workforce while hitting small business owners and their customers,” Haller said in a statement. “Franchising has opened the door for hundreds of thousands of entrepreneurs to pursue their dreams and millions of workers to create jobs, but this bill stands to destroy all that while raising prices for Californians and forcing restaurants to to close their doors. Governor Newsom should stand up for local businesses, the people of California, and responsible government, and veto this legislation.”
The IFA said that the structure of the Law was based on “false assumptions” that the working conditions in the field of counter-service were worse than other food organizations.
“But a recent analysis suggests that this statement is incorrect and not supported by government data,” the IFA said.
The California Business and Industrial Alliance, a trade union formed in 2017 by business executives and entrepreneurs to address the Private Attorneys General Act, said in August, “[Service Employees International Union] has selected anecdotes of workers’ problems, presenting neutral facts that show that the fast food industry is a unique crime that should be treated in a special way.”
The data IFA called for comes from the Center for Employment Policy, which analyzed nearly 10 percent of wage rate data from the California Department of Labor. It reported limited-service restaurants accounted for 1.6 percent per year of total revenue claims filed in the state from 2017 through 2022. Using an adjusted data set that included restaurant locations that could be identified by the state, low-service restaurants averaged 2.3 percent of total revenue. claim. Across all years of data reviewed, there was about one wage claim for every 1,000 underserved private sector workers. And the industry was responsible for 1.5 percent of Private Attorneys General Act cases in all industries where wages were awarded to workers, and 1.8 percent of all dollars awarded to workers.
Also, the report stated that the share of all industrial applications has remained stable each year during this period and has not increased significantly in recent years. The quick service sector represents 3.2 percent of total jobs in California and 1.8 percent of California locations.
Images from the Center for Employment Policy
However, from a pay perspective, Harvard and the University of California San Francisco released a study that said fast food workers are paid 85 cents on the dollar compared to non-fast food workers. .
A coalition of California small business owners, restaurateurs, vendors, workers, consumers and community organizations have created a “Stop AB 257” bill as the bill progresses. IFA is a member and so is the California Restaurant Association. Here is the full list of organizations involved.
Monday’s campaign called the law “reckless” and “expensive” and said it was “out of touch with the financial situation across California, choosing to pass this 20% food tax to our California counter-service.”
“The costs of rising food, gas and rent prices are overwhelming consumers and local restaurants,” the campaign said. “Currently the legislature is increasing food prices to support the unelected Council financially, which brings special interests to the national government. The council takes power from government agencies that are underfunded and under-resourced to protect workers. ”
Jesse Lara, a salesperson at El Pollo Loco in Southern California, added in a statement, “even in this time of historic price hikes, we have refused to raise prices for our customers because we know they can’t afford it. Governor Newsom’s know that if AB 257 becomes law, small businesses like mine will face no choice but to raise prices to stay afloat or be forced to close our doors.”
Sanna Shere, a Burger King salesperson from southern California, said it would “effectively end California business, which has given many women and minority entrepreneurs the highest rate of business ownership in the country.”
IFA and the California Restaurant Association this week launched promotions across the state. The U.S. Black Chambers, Inc. (USBC), the National Asian/Pacific Islander American Chamber of Commerce and Entrepreneurship (National ACE), and the National LGBT Chamber of Commerce (NGLCC), in partnership with the California Black Chamber of Commerce and the CalAsian Chamber of Commerce, also sent a letter to members of the senate to express their concerns.
In it they wrote, “not only do franchise models provide small business owners with an unknown economic opportunity, but the franchise model represents an important way to achieve the American Dream while creating jobs, money and opportunity for their community.”
The Employment Policies Institute released a new survey of U.S. economists. also, which said 83% oppose AB 257.
According to the Wall Street Journal, unions have spent more than $5 million to support lawmakers since the beginning of 2021 and Chick-fil-A, Jack in the Box, Chipotle, Burger King, Chipotle and In- N-Out they used. more than $1 million in lobbying efforts against the bill. IFA spent $615,000.
After the National Assembly approves the bill again, it will head to Governor Newsom’s desk to be signed into law. You have until September 30 to do so.
The bill would affect more than 550,000 workers in more than 30,000 locations.
On the other side of the debate, Fight for $15 and the Union said AB 257 “will protect and empower California’s predominantly black and Latino fast-food workers, who have a voice on the job help set industry standards for wages, safety and training.”
Anneisha Williams, a Los Angeles fast food worker and leader of the Fight for $15 and the Union, said Anneisha Williams. “Fast food workers like myself did whatever it took to raise our demand for AB 257 – we went on strike, marched in the streets and held protests across the country. We showed the world that we We can take on the strongest businesses and win. We look forward to Governor Newsom signing AB 257 into law and empowering us to create safer and healthier workplaces across the industry. fast food.
The union said California fast-food workers have held more than 400 strikes and filed “nearly 300 health, safety and wage grievances” as a result of the “year-long fight” that AB 257 pass.
“AB 257 establishes minimum wages and working conditions, protects workers from being fired for organizing and creates a union and union for fast food workers,” Asm added. Chris Holden (D-Pasadena), a lawmaker and fast-food vendor, in a statement. “I am proud to have introduced an inclusive approach to the industry by giving workers the opportunity to be included in a process that has always affected them.”
AB 257 was authored by Assembly members Wendy Carillo, Evan Low, and Luz Rivas.
Fight for $15 said AB 257 will address long-term issues by giving workers and franchisees a seat at the table. And it would help “fast food chefs and caterers the power to raise the industry minimum wage to $22 an hour. Like the federal minimum wage, the industry minimum wage would change annually according to the Consumer Price Index.”
Rep. Ro Khanna, Barbara Lee, Karen Bass, and five other members of the California delegation sent a letter to Newsom supporting the bill. “Investing in organizing like AB 257—which includes workers in the decision-making process—is key to addressing growing income inequality, increasing the nation’s labor force participation rate, and putting Americans back to work across the country,” it read.
What is the highest paying job?
The highest paying profession in the world, traditionally, holds the first place in this article: the anesthesiologist. They are also the only jobs listed above $300,000 per year. However, the list does not take into account big CEOs like Warren Buffett and Jeff Bezos, who make more than that.
What are the pros and cons of working in the food industry?
- It’s a Great Work Experience. …
- You may be overeating. …
- Making Similar Patterns Can Be Tasteful. …
- The Shifts Are Changing. …
- There is a High Potential for Pure Buyers. …
- Experience Makes You a Stronger Person. …
- You Will Make Good Friends. …
- A Very Good Opportunity to Get Promotion.
What are the positive effects of the food industry? Positive Impact of Technology in Food Industry: Technology provides convenience and help in all aspects of life. It gives people convenience related to food. Technology plays a role in all areas including food production, processing, packaging, safety, etc.
How many hours can I legally work in a day?
Young people cannot work more than eight hours a day or more than 40 hours a week. Unlike adults, there is no opt-out. If you work for two different employers on the same day, you still cannot work more than eight hours. In England you must be in part-time education or training until the 18th…
What is the longest you can legally work? The FLSA does not set limits on how many hours your employer can require you to work in a day or week. It only requires employers to pay employees overtime (the standard time-and-a-half rate of pay) for any hours over 40 that an employee works in a week.
Is it legal to work 24 hours straight in NY?
However, under state law, the employer is legally allowed to do so. In New York, employers have the legal authority to require employees to: Work more hours per day: Employers in New York are not limited to the number of hours they require employees to work each day.
How many hours can you work in a day according to OSHA?
Normal working time is generally considered to be work time that does not exceed eight consecutive hours during the day, five days a week and at least eight hours of rest.
How many hours are you legally allowed to work in 24 hours?
By law, employers must keep records of night workers’ hours to show that they do not work more than an average of 8 hours in any 24-hour period. The 8-hour average cannot be used and night workers must not work more than 8 hours in any 24-hour period if the work involves: special hazards.
Can you work 24 hours straight in Texas?
Section 52.001 of the Texas Labor Code prohibits an employer in a retail business from requiring an employee to work seven consecutive days. An employee shall not be denied “at least one period of 24 consecutive hours of rest or prayer” in each work week.
How many hours can you legally work in a day in Texas?
Calculating Overtime in Texas Under the FLSA and Texas Payday Law “employers must count the workweek as a fixed schedule of continuous, seven-day, 24-hour-a-day work.†Not required. to be Sunday to Saturday. It can start on any day of the week and end seven consecutive days later.
How many hours are you legally allowed to work in 24 hours?
By law, employers must keep records of night workers’ hours to show that they do not work more than an average of 8 hours in any 24-hour period. The 8-hour average cannot be used and night workers must not work more than 8 hours in any 24-hour period if the work involves: special hazards.
What is the longest you can work in one day?
By law, employers must keep records of night workers’ hours to show that they do not work more than an average of 8 hours in any 24-hour period. The 8-hour average cannot be used and night workers must not work more than 8 hours in any 24-hour period if the work involves: special hazards.
How long can a person work in a day?
Normally, the hours to be used in calculating the standard rate of pay may not exceed the statutory standard hours which are usually 8 hours per working day, 40 hours per working week.
What’s the longest legal shift?
For older workers, there is no legal limit to the number of hours a person can work per week, but the Fair Labor Standards Act dictates standards for overtime pay in the private and public sectors.
What is an easy job that pays a lot of money?
| # | Work | Average Salary |
|---|---|---|
| 1 | Groundskeeper or Grounds Assistant | $31,730 |
| 2 | Taxi Driver or Taxi Driver | $32,320 |
| 3 | Virtual Customer Service Representative | $35,830 |
| 4 | Phlebotomy Specialist | $36,320 |
What jobs make $100,000 a year? For example, according to the Occupational Employment and Wage Statistics (OEWS) program, physicians, surgeons, general managers, lawyers, pharmacists and dentists in the U.S. they all earn more than $100,000 a year, on average. The same is true of other types of engineers and scientists, including astronomers and physicists.