AB 257 threatens to upend the fast food franchise business model in California. It would create a state-run council to negotiate wages, hours and working conditions for an industry that employs more than 700,000 people in the state.
While the pandemic decimated indoor dining, large corporate restaurant chains fared better than neighborhood, locally-owned locales because of their size and cash holdings. Fast food restaurants, in particular, had more experience with drive-throughs, carryout and delivery options.
Leticia Reyes, a Jack In The Box employee, joined other fast-food workers and SEIU members to deliver postcards and petitions in support of AB257 to the Governor’s Office on May 31, 2022. Photo by Fred Greaves for CalMatters The workers went on strike for one day, prompting the manager to fix the air conditioning, Reyes said.
That complaint also said workers, including a pregnant employee, had to climb onto a table to scoop ice for customers from a broken dispenser. Copies of both CalOSHA complaints and the wage theft complaint were provided to CalMatters by SEIU. But franchise systems leave business owners with little room for overhead, leading them to cut corners and pay low wages, critics say.
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