In The News August 21, 2022

Big Labor Eats Small Business in California

America’s leading antibusiness policy incubator, also known as the state of California, is at it again. The state Assembly passed the so-called FAST Recovery Act in January. It was approved by the Senate Appropriations Committee on Aug. 11. The next stop will be a vote on the Senate floor, followed by Gov. Gavin Newsom’s desk. If the bill becomes law, it will drive up fast-food prices as much as 22% and wipe out the franchise business model, which provides nearly 800,000 jobs in the state.

Why single out the quick-service restaurant industry? The bill’s union backers, chiefly the Service Employees International Union, accuse quick-service franchisees, without evidence, of being particularly prone to labor-law violations. In reality, data from California’s Department of Industrial Relations show that the industry commits far fewer labor, wage and hour violations than other industries.