A restaurant-industry group reportedly sued some California state officials, alleging they plan to illegally implement a new law that would set minimum hourly wages for fast-food workers.
The California law would set a minimum wage for the state’s estimated half-million fast-food workers at as high as $22 an hour. That minimum would then increase annually based on inflation.
Currently, California’s minimum wage is $15 an hour, Wall Street Journal reported, and is set to rise to $15.50 in 2023.
Companies signal restaurant owners to cut staff, raise menu prices to compensate for the higher wages, and avoid opening new locations in California.
Related: California Fast-Food Bill Faces Industry Backlash, Says Unfair To Big Chains.
Companies including McDonald’s Corp (NYSE: MCD), Starbucks Corporation (NASDAQ: SBUX), Yum! Brands Inc (NYSE: YUM) and Chipotle Mexican Grill Inc (NYSE: CMG) support blocking the law.
The group, called Save Local Restaurants, filed the lawsuit in California Superior Court after the state’s Department of Industrial Relations informed them that the law would go into effect on January 1.
The restaurant group said it had submitted a petition with more than one million voter signatures to require Californians to vote on the measure in the 2024 election, pushing the law on hold until then.
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Source: https://finance.yahoo.com/news/restaurant-group-files-stop-implementation-114239363.html