In September of 2023, AB-1228 was passed by the California Legislature and signed by Governor Newsom. Central to that legislation was that minimum wage in fast food restaurants would increase to $20 per hour in chains with more than 60 outlets nationwide, including franchised outlets where the franchise exceeds that many outlets nationwide.
The AAFD expressed its opposition to the legislation after a deal was reached between the Governor’s office, the Service Employees International Union, the International Franchise Association (IFA) and National Restaurant Association (NRA). The AAFD argued that the deal was made behind closed doors without any true franchisee representation who bear the brunt of the impact, and that the increase should not target fast food nor focus on franchised outlets. A link to our opposition statement can be found here (https://backup.aafd.org/wp-content/uploads/2023/09/AAFD-Statement-on-AB-1228-SettlementFINAL.pdf).
In reaction to the new law, two large Pizza Hut franchisees in California recently disclosed that they would be laying off many delivery drivers and change to third party. This created an increase in interest with the law and the AAFD was contacted for its thoughts. Keith Miller, AAFD’s Director of Public Affairs and Engagement was interviewed by multiple sources on the subject. Below are the links to these stories:
Cal-Matters (this story was also reprinted by KQED and LAist): https://calmatters.org/economy/2023/12/minimum-wage-2024/
San Diego Tribune (Unfortunately, need a paid subscription to access): https://www.sandiegouniontribune.com/business/story/2023-12-29/fast-food-workers-are-getting-a-huge-raise-will-20-an-hour-become-san-diegos-new-minimum-wage