The following is a statement from Michelle Korsmo, President & CEO of the National Restaurant Association, on the passage of the California FAST Recovery Act. If signed by the governor, the bill will create an unelected board to conceive labor and employment laws and regulations for the state’s counter-service restaurants:
“It’s rare that a state legislature passes a bill that would hurt small businesses, their employees, and their customers, but California’s FAST Act does just that. Even the Governor’s own Department of Finance said AB 257 would increase costs. This comes at a time when inflation is at record highs and families are struggling every month.
“For restaurant operators, the FAST Act threatens businesses already contending with a 16% increase in wholesale food prices and ongoing supply chain challenges. In fact, 45 percent of California’s restaurant operators report that their business conditions are worse today than they were three months ago.
“Nine in 10 restaurants are small businesses that employ fewer than 50 people. This bill sends a clear message that the state legislature doesn’t understand the importance of these employees to the small business owners operating not just franchise restaurants, but also bakeries, juice bars, pizzerias, delis, salad shops and so many other quick service establishments on which Californians rely. It’s these local businesses that provide people first jobs, career opportunities, and support their communities. The FAST Act isn’t going to achieve its objective of providing a better environment for the workforce, it’s going to force the outcomes our communities don’t want to see.”
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