Food - News

McDonald's Takes A Controversial Stance On California's New Fast Food Bill

A bill passed by the California State Senate earlier in August 2022 could change quick-service restaurants forever. "The Fast Food Accountability and Standards Recovery Act," or FAST Act, aims to give fast food workers and unions a role in setting wage and hour standards at California fast-food chains that have over 100 locations nationally.

The first draft of the FAST Act wasn't approved by the State Assembly, and one of its biggest critics was McDonald's. Joe Erlinger, president of McDonald's U.S., released a public letter that wrote off the bill as a result of "backroom politicking," and claimed that it could "drive up the cost of eating at a quick-service restaurant in California by 20%."

Erlinger added that the law's jurisdiction seems unfairly prejudiced towards fast food restaurants and "imposes higher costs on one type of restaurant, while sparing another." However, McDonald's has lost its fight against the FAST Act, and it's safe to say that many restaurant workers in California will be happy to see a $22 minimum wage cap in 2023.