Is California out to get Mickey Ds?

[task0778]

California’s Legislature passed a bill Monday to create a government panel that would set wages for an estimated half-million fast food workers in the state, a first-in-the-U.S. approach to workplace regulation that labor union backers hope will spread nationally.

The bill, known as the Fast Act, would establish a panel with members appointed by the governor and legislative leaders composed of workers, union representatives, employers and business advocates. They would set hourly wages of up to $22 for fast food workers starting next year and can increase them annually by the same rate as the consumer-price index, up to a maximum of 3.5%.

A previous version of the bill passed by the state Assembly in January also allowed the council to oversee workplace conditions such as scheduling and made restaurant chains joint employers of their franchise’s employers, potentially opening them to liability for labor violations.

Representatives for companies including McDonald’s Corp., Yum Brands Inc. and Chipotle Mexican Grill Inc. succeeded in having those provisions removed in the state Senate via amendments over the past week, though they still oppose the bill.

“This is the biggest lobbying fight that the franchise sector has ever been in,” said Matthew Haller, president of the International Franchise Association, a trade group whose members own many fast food restaurants.

A University of California, Riverside School of Business study commissioned by the franchisee association found that setting minimum wages between $22 and $43 would generate a 60% increase in labor costs and raise fast-food prices by about 20%.

California’s current minimum wage is $15 and is set to increase by 50 cents on Jan. 1.

The final version of the Fast Act passed both houses of the Democratic-controlled state Legislature on Monday. In both the Assembly and the Senate, all of the “yes” votes came from Democrats and every Republican who voted opposed the bill.

Democratic Gov. Gavin Newsom now has until Sept. 30 to decide whether to sign or veto the bill.

California Fast Food Wages Would Be Set by Government Under Bill Passed by State Legislature

Representatives for chains including McDonald’s persuaded the state Senate, which passed the bill Monday, to remove a provision holding them liable for labor violations by franchisees.

www.wsj.com

Wouldn't surprise me if Gov Newsom signs it. First off, it's inflationary, rising wages and prices always is. Not to a huge degree, unless this catches on in other states and expands to other types of restaurants. I suspect that the license fees for other McDs around the country will go up to partially offset the higher costs of operating in CA. And I suspect a large number of fast-food places in CA will have to close up if we are heading into a recession as many suggest.

And of course this kind of decision will accelerate the automation of some fast-food services.

 

[SassyIrishLass]

LoL a happy meal will cost 15 bucks....good gawd

 

[Meister]

I'm not sure if this can fly in the courts.

 

[TNHarley]

I thought this was a babylon bee story. Should have known better

 

[task0778]

I'm not sure if this can fly in the courts.

Well, it is California, so....

I can't think of any grounds to stop it, but I don't know anything about their state laws. Would the feds have any say in this? Not seeing it, especially the current Supreme Court.

 

[Resnic]

California’s Legislature passed a bill Monday to create a government panel that would set wages for an estimated half-million fast food workers in the state, a first-in-the-U.S. approach to workplace regulation that labor union backers hope will spread nationally.

The bill, known as the Fast Act, would establish a panel with members appointed by the governor and legislative leaders composed of workers, union representatives, employers and business advocates. They would set hourly wages of up to $22 for fast food workers starting next year and can increase them annually by the same rate as the consumer-price index, up to a maximum of 3.5%.

A previous version of the bill passed by the state Assembly in January also allowed the council to oversee workplace conditions such as scheduling and made restaurant chains joint employers of their franchise’s employers, potentially opening them to liability for labor violations.

Representatives for companies including McDonald’s Corp., Yum Brands Inc. and Chipotle Mexican Grill Inc. succeeded in having those provisions removed in the state Senate via amendments over the past week, though they still oppose the bill.

“This is the biggest lobbying fight that the franchise sector has ever been in,” said Matthew Haller, president of the International Franchise Association, a trade group whose members own many fast food restaurants.

A University of California, Riverside School of Business study commissioned by the franchisee association found that setting minimum wages between $22 and $43 would generate a 60% increase in labor costs and raise fast-food prices by about 20%.

California’s current minimum wage is $15 and is set to increase by 50 cents on Jan. 1.

The final version of the Fast Act passed both houses of the Democratic-controlled state Legislature on Monday. In both the Assembly and the Senate, all of the “yes” votes came from Democrats and every Republican who voted opposed the bill.

Democratic Gov. Gavin Newsom now has until Sept. 30 to decide whether to sign or veto the bill.

California Fast Food Wages Would Be Set by Government Under Bill Passed by State Legislature

Representatives for chains including McDonald’s persuaded the state Senate, which passed the bill Monday, to remove a provision holding them liable for labor violations by franchisees.

www.wsj.com

Wouldn't surprise me if Gov Newsom signs it. First off, it's inflationary, rising wages and prices always is. Not to a huge degree, unless this catches on in other states and expands to other types of restaurants. I suspect that the license fees for other McDs around the country will go up to partially offset the higher costs of operating in CA. And I suspect a large number of fast-food places in CA will have to close up if we are heading into a recession as many suggest.

And of course this kind of decision will accelerate the automation of some fast-food services.

It will increase automation because companies will decide whats cheaper. To pay X amount of employees X amount of dollars over X amount of years, or automate. If automation is cheaper by X amount of dollars then goodbye employees.

The side effect of that will be is everything will get more expensive.

If the nation sees a low end job anyone can get, pretty much the low bar, then companies will start to raise prices because they know the lowest common denominator of society is making a lot more money which will force others to raise their wages. No one is going to install cable for 20 bucks an hour when you work fast food for 2 dollars more and not bust your ass. So companies that have skilled labor are going to have to pay them more, no one will want to keep doing their 25 dollar an hour job when flipping burgers is 22 dollars an hour.

It will seem awesome for about 9 months until a loaf of bread costs 11 dollars. And they will be right back where they are now "I cant provide for my family working fast food I need to make more money".

Fast food is a entry level job into the work force for kids, people who cant for whatever reason work anyother job whether is be physical or mental issues, or the elderly person who wants something to occupy them. Fast food never has been, never will be something you run the fry machine and provide for your family. It isnt designed that way.

Fast food is unskilled labor they hire even 16 year olds for. They shouldnt be making much money. It takes no education, no experience, no skills, or anything. A job where some 17 year old blue haired doofus that has to be reminded to wipe his ass and doesnt really care about anything can be hired isnt a job that needs to pay much.

 

[Meister]

Well, it is California, so....

I can't think of any grounds to stop it, but I don't know anything about their state laws. Would the feds have any say in this? Not seeing it, especially the current Supreme Court.

My thinking was that are putting mandates on the private industry with this Bill.

 

[Leo123]

California’s Legislature passed a bill Monday to create a government panel that would set wages for an estimated half-million fast food workers in the state, a first-in-the-U.S. approach to workplace regulation that labor union backers hope will spread nationally.

The bill, known as the Fast Act, would establish a panel with members appointed by the governor and legislative leaders composed of workers, union representatives, employers and business advocates. They would set hourly wages of up to $22 for fast food workers starting next year and can increase them annually by the same rate as the consumer-price index, up to a maximum of 3.5%.

A previous version of the bill passed by the state Assembly in January also allowed the council to oversee workplace conditions such as scheduling and made restaurant chains joint employers of their franchise’s employers, potentially opening them to liability for labor violations.

Representatives for companies including McDonald’s Corp., Yum Brands Inc. and Chipotle Mexican Grill Inc. succeeded in having those provisions removed in the state Senate via amendments over the past week, though they still oppose the bill.

“This is the biggest lobbying fight that the franchise sector has ever been in,” said Matthew Haller, president of the International Franchise Association, a trade group whose members own many fast food restaurants.

A University of California, Riverside School of Business study commissioned by the franchisee association found that setting minimum wages between $22 and $43 would generate a 60% increase in labor costs and raise fast-food prices by about 20%.

California’s current minimum wage is $15 and is set to increase by 50 cents on Jan. 1.

The final version of the Fast Act passed both houses of the Democratic-controlled state Legislature on Monday. In both the Assembly and the Senate, all of the “yes” votes came from Democrats and every Republican who voted opposed the bill.

Democratic Gov. Gavin Newsom now has until Sept. 30 to decide whether to sign or veto the bill.

California Fast Food Wages Would Be Set by Government Under Bill Passed by State Legislature

Representatives for chains including McDonald’s persuaded the state Senate, which passed the bill Monday, to remove a provision holding them liable for labor violations by franchisees.

www.wsj.com

Wouldn't surprise me if Gov Newsom signs it. First off, it's inflationary, rising wages and prices always is. Not to a huge degree, unless this catches on in other states and expands to other types of restaurants. I suspect that the license fees for other McDs around the country will go up to partially offset the higher costs of operating in CA. And I suspect a large number of fast-food places in CA will have to close up if we are heading into a recession as many suggest.

And of course this kind of decision will accelerate the automation of some fast-food services.

Marxism at work.......

 

[Independent thinker]

California’s Legislature passed a bill Monday to create a government panel that would set wages for an estimated half-million fast food workers in the state, a first-in-the-U.S. approach to workplace regulation that labor union backers hope will spread nationally.

The bill, known as the Fast Act, would establish a panel with members appointed by the governor and legislative leaders composed of workers, union representatives, employers and business advocates. They would set hourly wages of up to $22 for fast food workers starting next year and can increase them annually by the same rate as the consumer-price index, up to a maximum of 3.5%.

A previous version of the bill passed by the state Assembly in January also allowed the council to oversee workplace conditions such as scheduling and made restaurant chains joint employers of their franchise’s employers, potentially opening them to liability for labor violations.

Representatives for companies including McDonald’s Corp., Yum Brands Inc. and Chipotle Mexican Grill Inc. succeeded in having those provisions removed in the state Senate via amendments over the past week, though they still oppose the bill.

“This is the biggest lobbying fight that the franchise sector has ever been in,” said Matthew Haller, president of the International Franchise Association, a trade group whose members own many fast food restaurants.

A University of California, Riverside School of Business study commissioned by the franchisee association found that setting minimum wages between $22 and $43 would generate a 60% increase in labor costs and raise fast-food prices by about 20%.

California’s current minimum wage is $15 and is set to increase by 50 cents on Jan. 1.

The final version of the Fast Act passed both houses of the Democratic-controlled state Legislature on Monday. In both the Assembly and the Senate, all of the “yes” votes came from Democrats and every Republican who voted opposed the bill.

Democratic Gov. Gavin Newsom now has until Sept. 30 to decide whether to sign or veto the bill.

California Fast Food Wages Would Be Set by Government Under Bill Passed by State Legislature

Representatives for chains including McDonald’s persuaded the state Senate, which passed the bill Monday, to remove a provision holding them liable for labor violations by franchisees.

www.wsj.com

Wouldn't surprise me if Gov Newsom signs it. First off, it's inflationary, rising wages and prices always is. Not to a huge degree, unless this catches on in other states and expands to other types of restaurants. I suspect that the license fees for other McDs around the country will go up to partially offset the higher costs of operating in CA. And I suspect a large number of fast-food places in CA will have to close up if we are heading into a recession as many suggest.

And of course this kind of decision will accelerate the automation of some fast-food services.

California will not be happy until the have driven every business out of the state and every resident.

 

[martybegan]

My thinking was that are putting mandates on the private industry with this Bill.

A specific industry, which is probably too close to a bill of attainder to be Constitutional.

 

[task0778]

Gov Newsom signed the FAST Act bill today. So I suspect we'll soon find out if there are legal grounds to kill it. Between this and the way people are stealing stuff off the shelves without consequence, that state is heading towards disaster. It's no wonder people who can afford to leave are doing so.

 

[Fang]

45K a year for working at McDonald's. No stress and just show up and make french fries. If the vacation time is good I may have to look into this. And NO, I don't need to know about a career path to management.

 

[martybegan]

Gov Newsom signed the FAST Act bill today. So I suspect we'll soon find out if there are legal grounds to kill it. Between this and the way people are stealing stuff off the shelves without consequence, that state is heading towards disaster. It's no wonder people who can afford to leave are doing so.

In the end one of two things will happen, these places will automate, and replace the lowest skilled workers with less people worth the elevated salary.

Or people with more skills and low ambition will take the higher pay menial jobs, displacing the lowest skilled people the same as in the first scenario.

In the end, the actual minimum wage is always $0.00

 

[task0778]

In the end one of two things will happen, these places will automate, and replace the lowest skilled workers with less people worth the elevated salary.

Or people with more skills and low ambition will take the higher pay menial jobs, displacing the lowest skilled people the same as in the first scenario.

In the end, the actual minimum wage is always $0.00

I don't see how any fast-food place can possibly stay in business with that kind of labor cost. The profit margin wasn't that great to begin with, and so the question will be how much it will cost to automate the whole operation vs go out of business. I do not believe the number of employees who will get that increase in pay will be anywhere near the number of ex-employees who will be out of a job. AND, going forward how many more jobs will not be available in the future because new fast-food places will not be built.

Great, you fucked McDs over, and the rest of them. They'll automate their businesses if they can afford it or go out of business altogether, and either way all those jobs will no longer exist. Ever. More people of means will leave the state, and they'll start up fast-food franchise businesses in other states.

 

[initforme]

It will increase automation because companies will decide whats cheaper. To pay X amount of employees X amount of dollars over X amount of years, or automate. If automation is cheaper by X amount of dollars then goodbye employees.

The side effect of that will be is everything will get more expensive.

If the nation sees a low end job anyone can get, pretty much the low bar, then companies will start to raise prices because they know the lowest common denominator of society is making a lot more money which will force others to raise their wages. No one is going to install cable for 20 bucks an hour when you work fast food for 2 dollars more and not bust your ass. So companies that have skilled labor are going to have to pay them more, no one will want to keep doing their 25 dollar an hour job when flipping burgers is 22 dollars an hour.

It will seem awesome for about 9 months until a loaf of bread costs 11 dollars. And they will be right back where they are now "I cant provide for my family working fast food I need to make more money".

Fast food is a entry level job into the work force for kids, people who cant for whatever reason work anyother job whether is be physical or mental issues, or the elderly person who wants something to occupy them. Fast food never has been, never will be something you run the fry machine and provide for your family. It isnt designed that way.

Fast food is unskilled labor they hire even 16 year olds for. They shouldnt be making much money. It takes no education, no experience, no skills, or anything. A job where some 17 year old blue haired doofus that has to be reminded to wipe his ass and doesnt really care about anything can be hired isnt a job that needs to pay much.

Nobody should apply for those jobs then it's a mute point. Those jobs don't need to be done.

 

[Burgermeister]

In the end one of two things will happen, these places will automate, and replace the lowest skilled workers with less people worth the elevated salary.

Or people with more skills and low ambition will take the higher pay menial jobs, displacing the lowest skilled people the same as in the first scenario.

In the end, the actual minimum wage is always $0.00

Automation is already happening, particularly at McDonalds. If you go inside to the ones around here, you order at a kiosk and go get it when they call you. They have been trying to get the same deal going at drive-thrus but people are too stupid to use it and/or want to make stupid orders and there is noone there to help. They are testing kitchen robots. The same people who forced the unnatural wages on them will bitch about the loss of jobs and blame greedy capitalism rather than market manipulation by greedy politicians looking for votes.

 

[Ray From Cleveland]

Gov Newsom signed the FAST Act bill today. So I suspect we'll soon find out if there are legal grounds to kill it. Between this and the way people are stealing stuff off the shelves without consequence, that state is heading towards disaster. It's no wonder people who can afford to leave are doing so.

Actually there are consequences; the stores close up and go somewhere else. But we know democrats. They never think of consequences for their terrible policies. When things go wrong because of them, they just shrug their shoulders and say "Well.......we tried!"

I applaud Newsom. Keep sending more jobs to my state.

 

[AZrailwhale]

LoL a happy meal will cost 15 bucks....good gawd

I stopped in a MacDs this morning for the first time in years. A bacon, egg and cheese biscuit cost me six dollars and ninety nine cents plus tax. It’s the last time I will buy there. Edit: I forgot to mention that they gave me a number tent and told me it would be delivered to my table. After fifteen minutes I went up to the counter and the cashier checked, and couldn’t find my order. She checked and the person making orders said she had put it on the counter a while ago. When I pointed out that it said right on the receipt that there was a tent number she just shrugged. That’s not an employee who deserves a buck sixty five an hour like the minimum wage was when I was sixteen back in the Stone Age.

 

[initforme]

It will increase automation because companies will decide whats cheaper. To pay X amount of employees X amount of dollars over X amount of years, or automate. If automation is cheaper by X amount of dollars then goodbye employees.

The side effect of that will be is everything will get more expensive.

If the nation sees a low end job anyone can get, pretty much the low bar, then companies will start to raise prices because they know the lowest common denominator of society is making a lot more money which will force others to raise their wages. No one is going to install cable for 20 bucks an hour when you work fast food for 2 dollars more and not bust your ass. So companies that have skilled labor are going to have to pay them more, no one will want to keep doing their 25 dollar an hour job when flipping burgers is 22 dollars an hour.

It will seem awesome for about 9 months until a loaf of bread costs 11 dollars. And they will be right back where they are now "I cant provide for my family working fast food I need to make more money".

Fast food is a entry level job into the work force for kids, people who cant for whatever reason work anyother job whether is be physical or mental issues, or the elderly person who wants something to occupy them. Fast food never has been, never will be something you run the fry machine and provide for your family. It isnt designed that way.

Fast food is unskilled labor they hire even 16 year olds for. They shouldnt be making much money. It takes no education, no experience, no skills, or anything. A job where some 17 year old blue haired doofus that has to be reminded to wipe his ass and doesnt really care about anything can be hired isnt a job that needs to pay much.

Why even fill those jobs. They do not need to be done. We don't need people working in fast food places at all.