It seems apropos that April Fool’s Day began the start of a $20.00 minimum wage for California fast food workers. AB1228 or the FAST Act (Fast Food Accountability and Standards Recovery Act) was signed by Governor Gavin Newsom in September 2023 and scheduled to take effect in April of 2024. Despite the warnings from economists, franchisors, and anyone with a brain, Newsom and the Service Employees International Union (SEIU) plowed ahead, claiming this was a victory for workers who could now earn a “living wage.”
It certainly wasn’t a victory for the consumer. First, the prices of fast food started to tick up, then Pizza Hut drivers were laid off. The FAST Act is now fully in effect, and so are the unintended consequences. Tuesday, April 2 saw reports of fast-food restaurants cutting hours, laying off workers, and some completely shuttering their businesses.
Welcome to California,…
