Narrowly approved, the landmark law awaits Gov. Gavin Newsom's signature.
The bill would give labor advocates a long-elusive bargaining foothold in a low-wage industry that employs more than half a million non-unionized workers statewide.
Lawmakers pared back the bill significantly to push it toward final passage after several moderate Democratic legislators balked at earlier proposals to give the new council sweeping regulatory authority over the industry. Lawmakers added a bevy of amendments last week to address the concerns of business owners.
Even without that provision, labor leaders were calling the bill a victory. SEIU President Mary Kay Henry said at a rally outside the Capitol that the bill was a “watershed moment for working people.” Business and restaurant groups, which spent big on TV advertising opposing the bill, released a statement urging Newsom to veto it. They have said fast food is being unfairly targeted and warned the new regulations would force restaurants to increase prices at a time of high inflation.“Upending our state’s existing lawmaking structure and regulatory platform is no way to help workers,” said Jot Condie, California Restaurant Association president, in a statement.
It was not immediately clear how many business or workers would be excluded by raising that threshold. For franchised brands with locations in California, the number of chains fitting the description fell from 149 to 84, according to the International Franchise Association.
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