The new standards apply to chains with at least 100 locations nationwide. “Today’s action gives fast-food workers a stronger voice and seat at the table to set fair wages and critical health and safety standards across the industry,” said Gov. Gavin Newsom, who is also a restaurant owner. “I am 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 the restaurant industry has spoken out against the law. Last week, McDonald’s US president Joe Erlinger called the legislation “one-sided, hypocritical and ill-conceived.” He believes the creation of the board will “hurt everyone” because the new standards will apply to large restaurant chains, not those with fewer than 100 locations. The International Franchise Association also took issue with the bill, calling it a “discriminatory measure designed to target the franchise business model.” IFA President and CEO Matthew Haller said in a statement that the bill would hurt smaller franchise operators and pointed to a study that suggested higher wages could lead to 20 percent increases in menu prices. The National Restaurant Association also opposes the bill. But dozens of advocacy groups, including the Economic Policy Institute, National Employment Law and One Fair Wage urged the state in January to pass the bill.
