California Fast Food Restaurant Minimum Wage and Labor Regulations Referendum (2024)
California Fast Food Restaurant Minimum Wage and Labor Regulations Referendum | |
---|---|
Election date November 5, 2024 | |
Topic Minimum wage and Business regulation | |
Status Not on the ballot | |
Type Referendum | Origin Citizens |
The California Fast Food Restaurant Minimum Wage and Labor Regulations Referendum is not on the ballot in California as a veto referendum on November 5, 2024.[1][2][3]
On September 11, 2023, Save Local Restaurants, the campaign behind the veto referendum announced that it had reached a compromise with the state legislature under Assembly Bill 1228. The bill will set a minimum wage of $20 per hour for limited-service restaurants that are part of a chain with more than 60 locations beginning on April 1, 2024. The bill also established a Fast Food Council with the authority to increase the hourly minimum wage annually by no more than the lesser of 3.5% or the change in inflation. Assembly Bill 257, the targeted legislation of the veto referendum, was also repealed. Save Our Local Restaurants withdrew the referendum on December 29, 2023.[4]
Overview
What would Assembly Bill 257 have changed about the fast food industry in California?
- See also: Measure design
The veto referendum would have repealed Assembly Bill 257 (AB 257), which was signed into law on September 5, 2022. Under the compromise passed in September 2023, AB 257 was repealed and replaced with Assembly Bill 1228. AB 257 would have authorized the creation of a 10-member fast food council within the Department of Industrial Relations. AB 257 would have authorized the council to "establish sectorwide minimum standards on wages, working hours, and other working conditions adequate to ensure and maintain the health, safety, and welfare of, and to supply the necessary cost of proper living to, fast food restaurant workers." The law would have authorized the labor commissioner and the Division of Labor Standards Enforcement to enforce the regulations adopted by the state council. The labor commissioner would have been required to investigate alleged violations and order appropriate remediation.[5]
AB 257 would have authorized the council to adopt a minimum wage for fast food restaurant employees not to exceed $22 per hour at its implementation but increased every year by the lesser of 3.5% or rate of change in inflation.[5]
Who supported and opposed Assembly Bill 257?
- See also: Support for 'Yes' vote and Support for 'No' vote
Assemblyman Chris Holden (D-41), a former fast-food franchisee, authored AB 257. The law received support from AFSCME California, California Labor Federation, SEIU California State Council, Unite HERE, ACLU of California, and the California Employment Lawyers Association. Mary Kay Henry, president of the Service Employees International Union, said, "It’s time for corporations like McDonald’s, Amazon, Starbucks and Delta to come to a national bargaining table to raise standards across their industries and ensure every worker is respected, protected and paid a living wage."[1][6]
Save Local Restaurants led the campaign in support of a 'no' vote on the referendum, which would repeal the legislation. As of October 31, 2023, the committee reported receiving $71.7 million in contributions. The top donors are Chipotle Mexican Grill ($12.8 million), In-N-Out Burgers ($12.8 million), and Chick-fil-a ($11.5 million). Joe Erlinger, president of McDonald’s USA, said, "Last fall, the legislature passed a bill–AB257, or the FAST Act–almost entirely at the behest of organized labor’s firm grip on many of the state’s lawmakers. It makes it all but impossible to run small business restaurants, but the impacts are far beyond that. Under the FAST Act, an unelected council of political insiders, not local business owners and their teams, would make big decisions about crucial elements of running a business, fracturing the economy in the process."[7]
Measure design
- See also: Text of measure
The referendum would have overturned Assembly Bill 257 (AB 257), which was signed into law on September 5, 2022. AB 257 was repealed by a legislative compromise between state legislators and Save Our Local Restaurants via the passage of Assembly Bill 1228. AB 257 would enact the Fast Food Accountability and Standards Recovery Act or FAST Recovery Act.[5]
Click on the arrows (▼) below for summaries of the different provisions of AB 257.
Fast food council: Membership and purpose
AB 257 would have authorized the creation of the fast food council within the Department of Industrial Relations. It would have been composed of 10 members consisting of the following:[5]
- one representative from the Department of Industrial Relations,
- two representatives of fast food restaurant franchisors,
- two representatives of fast food restaurant franchisees,
- two representatives of fast food restaurant employees,
- two representatives of advocates for fast food restaurant employees, and
- one representative from the Governor's Office of Business and Economic Development.
The governor would have appointed all representatives, except for the two representatives of advocates for fast food restaurant employees, which would have been appointed by the Speaker of the Assembly and the Senate Rules Committee (one each).
Each term would have been four years, and council members would be term-limited to two consecutive terms. A chairperson would have been appointed from among the council members by the governor.
AB 257 states that the council's purpose would be to "establish sectorwide minimum standards on wages, working hours, and other working conditions adequate to ensure and maintain the health, safety, and welfare of, and to supply the necessary cost of proper living to, fast food restaurant workers."[5]
The law would have required the council to review health, safety, and employment standards once every three years. The law would also have required the council to hold open meetings or hearings no less than every six months.
Counties or cities with a population greater than 200,000 would have been authorized to create a local fast food council. The council would have been composed of at least one representative of a fast food restaurant franchisor or franchisee; at least one representative who is a fast food restaurant employee; and a majority of representatives from local employment, health, and safety agencies. Local fast food councils could have made recommendations to the state fast food council.
The law would have dissolved the council permanently on January 1, 2029.
Fast food restaurant labor regulations: Minimum wage, labor standards, and enforcement
Regulations could have been adopted by the council by a simple majority vote. If regulations adopted by the council were in conflict with regulations adopted by another state agency, the conflicting regulations from the other state agency would not have been appied to fast food restaurant employees, franchisees, or franchisors.[5]
The council would have been required to submit a report on any changes or adoptions of labor standards and regulations to the appropriate committees on labor of each chamber of the state legislature by January 15 of each year. The changes would have taken effect no sooner than October 15, excluding emergency standards adopted.[5]
Labor standards and regulations adopted by the council would not have superseded a standard covered by a valid collective bargaining agreement if the agreement provides similar or greater protection.[5]
Fast food employee minimum wage
AB 257 would have authorized the council to adopt a minimum wage for fast food restaurant employees not to exceed $22 per hour in 2023. On January 1, 2024, and every year after, the law would have authorized the council to increase the minimum wage by the lesser of one of the following:
- (i) 3.5%
- (ii) the rate of change of the U.S. Consumer Price Index from the prior two years.[5]
Enforcement of minimum wage and standards
The law would have authorized the labor commissioner and the Division of Labor Standards Enforcement to enforce the regulations adopted by the state council. The labor commissioner would have been required to investigate alleged violations and order appropriate remediation.[5]
The law would have also prohibited a fast food restaurant operator from firing, discriminating, or retaliating against any employee for filing a complaint or disclosing information to persons in authority, the media, the legislature, a watchdog organization, or a governmental agency. Under the law, any fast food restaurant employee would have been entitled to a right of action, reinstatement, lost wages or benefits, and attorney's fees.[5]
Text of measure
Ballot title
The official ballot title would have been as follows:[3]
“ |
Referendum challenging 2022 law authorizing creation of council to set minimum wage and working standards for fast-food workers.[8] |
” |
Petition summary
The summary provided for inclusion on signature petition sheets was as follows:[3]
“ |
If the required number of registered voters sign this petition and it is timely filed, a 2022 law will not take effect unless approved at the next statewide general or special election after November 8, 2022. The challenged law: • Authorizes creation of Fast Food Council (upon submission of 10,000 fast-food worker signatures) to set working standards and minimum wage (up to $22/hour in 2023, with capped annual increases) at fast-food restaurants with 100+ nationwide locations; • Prohibits retaliation against fast-food workers for making certain workplace complaints.[8] |
” |
Full text
The full text of the referendum is below:[5]
Support for 'Yes' vote
Supporters
Officials
- Assemblyman Chris Holden (D)
Unions
- AFSCME California
- California Labor Federation
- SEIU California State Council
- Unite HERE
Organizations
Arguments
Support for 'No' vote
Save Local Restaurants led the campaign in support of a 'no' vote on the referendum, which would repeal the legislation.[9]
Opponents
Corporations
- Blaze Pizza
- Chick-fil-A
- Chipotle Mexican Grill
- Domino's Pizza
- In-N-Out Burgers
- Starbucks
- The Wendy's Company
- Wing Stop
Organizations
- International Franchise Association Franchising Political Action Committee Inc
- McDonald's Corporation Political Action Committee
- National Restaurant Association PAC (Restaurant PAC)
- U.S. Chamber of Commerce
Arguments
Campaign finance
There is one committee registered to sponsor the referendum—Save Local Restaurants. The committee reported over $71.7 million in contributions.[10]
Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures | |
---|---|---|---|---|---|
Support | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
Oppose | $71,668,164.78 | $52,341.51 | $71,720,506.29 | $21,431,441.20 | $21,483,782.71 |
Referendum sponsor committee
The following table includes contribution and expenditure totals for the committee sponsoring the referendum.[10]
Committees in opposition to Fast Food Restaurant Minimum Wage and Labor Regulations Referendum | |||||
---|---|---|---|---|---|
Committee | Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures |
Save Local Restaurants | $71,668,164.78 | $52,341.51 | $71,720,506.29 | $21,431,441.20 | $21,483,782.71 |
Total | $71,668,164.78 | $52,341.51 | $71,720,506.29 | $21,431,441.20 | $21,483,782.71 |
Donors
The following table shows the top donors to the committee sponsoring the referendum.[10]
Donor | Cash Contributions | In-Kind Contributions | Total Contributions |
---|---|---|---|
Chipotle Mexican Grill | $12,838,000.00 | $0.00 | $12,838,000.00 |
In-N-Out Burgers | $12,838,000.00 | $0.00 | $12,838,000.00 |
Chick-fil-a | $11,588,000.00 | $0.00 | $11,588,000.00 |
McDonalds | $11,054,934.00 | $52,204.00 | $11,107,138.00 |
National Restaurant Association | $5,493,000.00 | $0.00 | $5,493,000.00 |
Background
Assembly Bill 1228 (2023)
On September 11, 2023, Save Local Restaurants, the campaign behind the veto referendum announced that it had reached a compromise with the state legislature under Assembly Bill 1228. AB 1228 passed along party lines in the Senate by a vote of 32-8. It was also passed along party lines in the state Assembly by a vote of 53-17. Gov. Gavin Newsom (D) signed it on September 28, 2023.[11]
AB 1228 was designed to raise the hourly minimum wage to $20 for fast food employees. Similar to AB 257, it was designed to create a fast food industry council to advise on future wage increases and working conditions.
Save Our Local Restaurants, the campaign behind the referendum, said it would withdraw the veto referendum by January 1, 2023. It was withdrawn on December 29, 2023.[4]
Assembly Bill 257 (2022)
On August 29, 2022, Assembly Bill 257 (AB 257), the targeted legislation of the referendum, was approved with amendments by the state Senate by a vote of 21-12 with seven absent. The state House concurred and passed AB 257 by a vote of 47-19 with 14 absent. It was signed by Gov. Gavin Newsom (D) on September 5.[2][1]
|
|
Fast food industry in California
The Bureau of Labor Statistics reported that California had 360,980 fast food or counter workers employed as of May 2021. The hourly mean wage was $15.61, which was the third highest behind Washington, D.C. ($ 16.56) and the state of Washington ($ 15.82).[12]
Senate Bill 3 (2016)
Senate Bill 3 (SB 3) was a legislative compromise passed in 2016. SB 3 was designed to incrementally increase the statewide minimum wage until it reached $15 in 2022 and adjust it annually by inflation. Businesses with fewer than 25 employees did not have to meet the $15 per hour minimum wage until 2023. The bill was also designed to allow the governor to delay minimum wage hikes in the event of an economic decline. It passed in the state senate by a vote of 23-15 with two senators absent or not voting. It passed in the state house by a vote of 48-26 with four members absent or not voting.[13]
SEIU-United Healthcare Workers West, the sponsoring group behind a $15 minimum wage initiative, which qualified for the November 2016 ballot on March 22, 2016, was involved with negotiations surrounding the approved legislation. After Gov. Jerry Brown (D) signed SB 3, SEIU-UHW West withdrew its initiative on June 23, 2016. A second initiative sponsored by the state council of SEIU stopped circulating its petition and withdrew it on April 1, 2016.[14]
California veto referendum ballot measures
A veto referendum is a type of citizen-initiated ballot measure that asks voters whether to uphold or repeal a law passed by the state legislature. Opponents of the law collect signatures to place the veto referendum on the ballot, with the aim of voters deciding to repeal the law. In California, voters have voted on 50 veto referendums, upholding laws 21 times (42%) and repealing laws 29 times (58%).
In 1912, Californians voted on a statewide veto referendum for the first time. The most recent veto referendum was on the ballot in 2022.
Number of California veto referendums | |||
---|---|---|---|
Total veto referendums | Laws upheld | Laws repealed | Year of last measure |
50 | 21 | 29 | 2022 |
The veto referendum ballot measure is also known as a popular referendum, people's veto, or citizen's veto. There are 23 states that have a process for veto referendums. Voters in California approved a constitutional amendment that enacted processes for ballot initiative and veto referendum in 1911.
Path to the ballot
The state process
In California, the number of signatures required for a veto referendum is equal to 5 percent of the votes cast in the preceding gubernatorial election. Petitions are allowed to circulate for 90 days from the date the targeted bill was signed. Signatures for referendums need to be certified at least 31 days before the general election. As the verification process can take multiple months, the secretary of state recommends submitting signatures before the certification deadline.
The requirements to get veto referendums certified for the 2024 ballot:
- Signatures: 623,212 valid signatures
- Deadline: December 5, 2022
Signatures are first filed with local election officials, who determine the total number of signatures submitted. If the total number is equal to at least 100 percent of the required signatures, then local election officials perform a random check of signatures submitted in their counties. If the random sample estimates that more than 110 percent of the required number of signatures are valid, the referendum is eligible for the ballot. If the random sample estimates that between 95 and 110 percent of the required number of signatures are valid, a full check of signatures is done to determine the total number of valid signatures. If less than 95 percent are estimated to be valid, the referendum does not make the ballot.
Details about this initiative
- The referendum was filed on September 6, 2022, by Amber Evans and Steven McDermed.[3]
- On September 16, 2022, the initiative was cleared for signature gathering.[3]
- On December 5, 2022, the campaign announced that it had submitted over 1 million signatures for verification.[15]
- On January 24, the secretary of state reported that the initiative had qualified for the ballot. The final random sample count found that at least 712,568 signatures were valid of the 1,004,492 submitted.[16]
- On December 29, 2023, the referendum was withdrawn from the ballot.[3]
Lawsuit
Lawsuit overview | |
Issue: Whether the state can enforce a law while signatures for a veto referendum are being verified | |
Court: Sacramento Superior Court | |
Ruling: Ruled in favor of plaintiffs; the law could not take effect during the signature verification process. | |
Plaintiff(s): Save Local Restaurants | Defendant(s): Katie Hagen, Director of the California Department of Industrial Relations; California Secretary of State Shirley Weber (D); and California Attorney General Rob Bonta (D) |
Plaintiff argument: The constitutional section governing veto referendums requires the state not to enforce the law once a veto referendum is filed. | Defendant argument: The state can enforce the law up until and unless the veto referendum makes the ballot. |
Source: AP News
On December 29, 2022, Save Local Restaurants filed a lawsuit against Director of the California Department of Industrial Relations Katie Hagen, California Secretary of State Shirley Weber (D); and California Attorney General Rob Bonta (D) asking the court to stop the state from enforcing the law until the signature verification process is complete for the petition. While both the campaign and state agree the bill would be suspended ahead of the election on Nov. 5, 2024, the campaign says the bill was suspended upon signature submission and the state says the bill wouldn’t be suspended until and unless enough signatures are verified.[17]
Lawyers for the PAC cited the constitutional amendment from 1911, which created the referendum process, as saying “... no such act or section or part of such act shall go into effect until and unless approved by a majority of the qualified electors voting thereon.” This constitutional language was repealed and replaced in 1966 when voters approved Proposition 1A.[17]
The California Constitution now says, “If a referendum petition is filed against a part of a statute, the remainder of the statute shall not be delayed from going into effect.” The lawsuit stated that a logical extension of this requirement is that when referendum petitions are filed against an entire statute, the entire statute is delayed from going into effect, and “referendum petition is filed” refers to filing signatures. The lawsuit cites a 2020 stipulated agreement between Secretary of State Alex Padilla, Attorney General Xavier Becerra, and petitioners behind a flavored tobacco ban referendum. That agreement said the flavored tobacco ban legislation would not take effect on Jan. 1, 2021, while signatures were being verified.[17]
Katie Hagen, director of the California Industrial Relations Department, said there is an “absence of clear authority providing that AB 257 is suspended merely upon submission of unverified signatures.”[18]
On December 30, 2022, Sacramento Superior Court Judge Shelleyanne W. L. Chang placed an injunction on the bill ahead of a hearing on January 13.[19]
On January 13, 2023, Judge Chang granted a preliminary injunction keeping the bill from taking effect until the petition is verified by the state. Judge Change wrote, "The harm to the California citizens and electors ... is great given the Court's duty to 'jealously guard' the people's right to referendum and the confusion that would occur if AB257 were temporarily implemented while signatures were verified."[20]
How to cast a vote
- See also: Voting in California
Click "Show" to learn more about current voter registration rules, identification requirements, and poll times in California.
How to cast a vote in California | |||||
---|---|---|---|---|---|
Poll timesAll polls in California are open from 7:00 a.m. to 8:00 p.m. Pacific Time. An individual who is in line at the time polls close must be allowed to vote.[21] Registration
To vote in California, an individual must be a U.S. citizen and California resident. A voter must be at least 18 years of age on Election Day. Pre-registration is available at 16 years of age. Pre-registration automatically registers voters when they turn 18.[22] On October 10, 2015, California Governor Jerry Brown (D) signed into law Assembly Bill No. 1461, also known as the New Motor Voter Act. The legislation, which took effect in 2016, authorized automatic voter registration in California for any individuals who visit the Department of Motor Vehicles to acquire or renew a driver's license.[23][24] Automatic registrationCalifornia automatically registers eligible individuals to vote when they complete a driver's license, identification (ID) card, or change of address transaction through the Department of Motor Vehicles. Online registration
California has implemented an online voter registration system. Residents can register to vote by visiting this website. Same-day registrationCalifornia allows same-day voter registration. Californians must be registered to vote at least 15 days before Election Day. If the registration deadline has passed for an upcoming election, voters may visit a location designated by their county elections official during the 14 days prior to, and including Election Day to conditionally register to vote and vote a provisional ballot. The state refers to this process as Same Day Voter Registration.[25] Residency requirementsTo register to vote in California, you must be a resident of the state. State law does not specify a length of time for which you must have been a resident to be eligible. Verification of citizenshipCalifornia's constitution requires that voters be U.S. citizens. When registering to vote, proof of citizenship is not required. Individuals who become U.S. citizens less than 15 days before an election must bring proof of citizenship to their county elections office to register to vote in that election.[25] Verifying your registrationThe site Voter Status, run by the California Secretary of State's office, allows residents to check their voter registration status online. Voter ID requirementsCalifornia does not require voters to present photo identification. However, some voters may be asked to show a form of identification when voting if they are voting for the first time after registering to vote by mail and did not provide a driver license number, California identification number, or the last four digits of their social security number.[26][27] The following list of accepted ID was current as of March 2023. Click here for the California Secretary of State page to ensure you have the most current information.
|
See also
External links
Footnotes
- ↑ 1.0 1.1 1.2 California State Legislature, "AB 257," accessed September 8, 2022
- ↑ 2.0 2.1 California Attorney General's Office, "Full text," accessed September 8, 2022
- ↑ 3.0 3.1 3.2 3.3 3.4 3.5 California Attorney General's Office, "Initiative and Referendum Proposals," accessed September 8, 2022
- ↑ 4.0 4.1 Save Our Local Restaurants, "Terms Sheet," accessed September 11, 2023
- ↑ 5.00 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 5.09 5.10 5.11 5.12 California State Assembly, "AB 257," accessed December 8, 2022
- ↑ SEIU, "On Labor Day, Gov. Newsom Signs Landmark Bill to Give Voice to More Than Half Million Fast-food Workers," September 5, 2022
- ↑ USA Today, "California's fast food bill prompts Virginia and New York copycats, raising stakes for everyone," February 3, 2023
- ↑ 8.0 8.1 8.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
- ↑ Cal-Access, "Save Local Restaurants," accessed December 5, 2022
- ↑ 10.0 10.1 10.2 Cal-Access, "Save Local Restaurants," accessed December 5, 2022
- ↑ California State Legislature, "AB 1228," accessed September 29, 2023
- ↑ Bureau of Labor Statistics, "Occupational Employment and Wages, May 2021," accessed February 16, 2023
- ↑ Open States, "California Senate Bill 3," accessed April 1, 2016
- ↑ Monterey Herald, "California union halts minimum wage drive with law pending," April 1, 2016
- ↑ Save Local Restaurants, "Over One Million Californians Sign Petition to Oppose FAST Act Food Tax," December 5, 2022
- ↑ California Secretary of State, "Final Random Sample Count," accessed January 25, 2023
- ↑ 17.0 17.1 17.2 Save Local Restaurants, "Lawsuit to Protect Right of Referendum," accessed January 11, 2023
- ↑ OC Register, "Court order puts temporary hold on California’s fast food bill," January 3, 2023
- ↑ AP News, "Judge temporarily blocks California fast food wages law," December 30, 2022
- ↑ Restaurant Business Online, "FREEZE ON CALIFORNIA’S FAST ACT TO REMAIN IN PLACE," January 13, 2023
- ↑ California Secretary of State, "Section 3: Polling Place Hours," accessed April 4, 2023
- ↑ California Secretary of State, "Voter Registration," accessed April 4, 2023
- ↑ The Los Angeles Times, "Gov. Brown approves automatic voter registration for Californians," October 10, 2015
- ↑ The Sacramento Bee, "California voter law could register millions–for a start," October 20, 2015
- ↑ 25.0 25.1 California Secretary of State, "Registering to Vote," accessed April 4, 2023
- ↑ California Secretary of State, "What to Bring to Your Polling Place," accessed April 4, 2023
- ↑ BARCLAYS OFFICIAL CALIFORNIA CODE OF REGULATIONS, "Section 20107," accessed April 4, 2023
State of California Sacramento (capital) | |
---|---|
Elections |
What's on my ballot? | Elections in 2024 | How to vote | How to run for office | Ballot measures |
Government |
Who represents me? | U.S. President | U.S. Congress | Federal courts | State executives | State legislature | State and local courts | Counties | Cities | School districts | Public policy |