OPINIONWorkforce

The Fast Act is already rippling beyond fast food

Working Lunch: Proposals in Massachusetts and Virginia are proof the wage-setting model called for by California's first-of-its-kind law is spreading geographically and across job types.

If doubts persisted that California’s landmark fast-food wage rules would spread to other types of jobs, they’re gone now. Proposals to duplicate the Fast Act model for setting pay in other fields have already surfaced in Virginia and Massachusetts, as listeners will learn from this week’s edition of the Working Lunch political podcast.

Co-hosts Joe Kefauver and Franklin Coley, the principals of the government-affairs consultancy Align Public Strategies, detail how legislation echoing California’s controversial Fast Act has already been introduced in New York, Massachusetts and Virginia.

Only the Virginia bill is focused on changing the way fast-food workers’ wages and working conditions are set. The Massachusetts measure focuses on a new model for ride-share drivers like the gig workers associated with Uber and Lyft.

It, too, would set up a council to set wages and working conditions, albeit for drivers rather than fast-food cashiers or kitchen workers. But, Kefauver and Coley asserted, the development is still worrisome for restaurant employers because it’s another advance of what’s known as “sectoral bargaining,” or having employment contracts negotiated across a whole industry. All employers within a field would be obligated by the outcome of the collective bargaining.

Under California’s Fast Act, for instance, the conditions set by a Fast Food Council would be binding on any quick-service restaurant that’s part of a chain with at least 100 branches nationwide.

The more that model is embraced, the greater the likelihood that restaurant employers will be facing sectoral bargaining in their jurisdictions, Kefauver and Coley agreed.

“Any win for sectoral bargaining is a loss on the Fast Act for the restaurant industry,” said Kefauver.

For more on the spread of Fast Act-like legislation, download this week’s episode of Working Lunch from wherever you get your podcasts.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Why are so many restaurant chains filing for bankruptcy?

The Bottom Line: A combination of rising costs and weakening sales, and more expensive debt, has caused real problems for restaurant chains. But the industry is also really difficult.

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Trending

More from our partners