The ‘best alternative’: Silicon Valley fast-food industry finds compromise in new legislation

FLIPPING BURGERS, ASSEMBLING sandwiches and scooping guacamole onto salads is going to look tastier to San Jose’s fast-food workers after unions and restaurant owners reached an agreement through a state bill heading to Gov. Gavin Newsom’s desk.

State legislators passed Assembly Bill 1228 last week, ending a stalemate over fast-food labor policies, which triggered a lawsuit and referendum for the March 2024 ballot. Under AB 1228, fast-food worker wages increase to $20 per hour starting in April and a nine-member Fast Food Council will be created to monitor the industry. This is predicated on the referendum being pulled from the ballot and last year’s bill being repealed. It also involves SEIU withdrawing a bill that makes fast-food franchisors legally liable when their franchisees commit labor violations.