Law to Increase Fast-Food Worker Wages Halted by Judge, Pitting Industry Groups Against Unions and State

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Implementation could include paving the way for appointment to the Fast Food Council. But wage increases and other changes won’t go into effect until at least October, and the law won’t immediately affect workers’ wages.

The International Franchise Association and the National Restaurant Association said state law requires states to wait tight until the status of the referendum is determined. Industry groups have submitted over one million signatures from voters supporting the referendum. This far exceeds the approximately 620,000 required by state law.

“California bureaucrats, at the request of special interest groups, took an unprecedented step to violate the Constitution and the will of more than one million voters who called for the Fast Food Council to be suspended through the referendum process. ‘, said Matt Haller, chief executive officer and chairman of the International Franchise Association, in a statement.

The International Service Workers Union, which backed the creation of the council, blamed the lawsuit and several companies by name, including McDonald’s, Chipotle and Starbucks.

“This sneaky tactic is unfortunately out of the strategy book of a company that Californians know all too well,” said Tia Orr, executive director of SEIU California, in a statement.

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