Mcdonald S Us Chief Says California Fast Food Bill Unfairly Targets Big Chains

Justin Sullivan | Getty Images The head of McDonald’s US publicly criticized a landmark California bill on Wednesday that would give the state more control over pay for fast-food workers, saying it unfairly targets big chains. The comments by Joe Erlinger, president of McDonald’s USA, come after the California state Senate earlier this week approved a bill that would give a 10-person board the power to raise the industry’s minimum wage to $22 an hour for chains with more than 100 locations nationwide. California’s current minimum wage is $15.50 an hour. The council will also have the power to set security conditions. Supporters of the bill say it will empower fast food workers and help solve industry problems such as unsafe working conditions and wage theft, which can include not paying employees for overtime. But the FAST Act is facing strong backlash from the restaurant industry, which fears the impact on California restaurants and the example it sets for other states. “It imposes higher costs on one type of restaurant while saving another. This is true even if those two restaurants have the same revenue and the same number of employees,” Erlinger wrote in a letter posted on the company’s website Wednesday. For example, Erlinger said a McDonald’s franchisee with two locations would be subject to the bill because it is part of a large national chain. However, he said the owner of 20 restaurants that are not part of a chain would be exempt. “Aggressive wage increases aren’t bad… But if it’s necessary to raise restaurant workers’ wages and protect their welfare – and it is – shouldn’t all restaurant workers benefit?” Erlinger wrote. It’s rare for McDonald’s to speak out publicly against state legislation, though the chain reportedly pushed its franchisees to lobby against the California bill. Nearly 10 percent of McDonald’s restaurants in the U.S. are located in California, according to Citi Research. McDonald’s only operates about 5 percent of its more than 13,000 U.S. locations. Its franchisees handle the rest, but the chain often lobbies on their behalf. In 2019, McDonald’s told the National Restaurant Association that it would no longer oppose federal, state or local minimum wage increases. Other restaurant companies are also fighting the bill. State records show Chipotle Mexican Grill, Chick-fil-A, Yum Brands and Restaurant Brands International are among the chains spending money to pressure California lawmakers to oppose the legislation. The National Restaurant Association, an industry group, has also spent at least $140,000 fighting the bill, according to California records. The organization’s president, Michelle Korsmo, said in a statement that 45 percent of California restaurant operators report that business conditions are worse today than they were three months ago. “The FAST Act is not going to achieve its goal of providing a better environment for the workforce, it will impose outcomes that our communities do not want to see,” he said. A tougher version of the FAST Act that would make franchisees like McDonald’s liable for their franchisees’ labor violations passed the California State Assembly. However, the number of changes made to the Senate version means the bill will have to be voted on again in the assembly or compromised before it can reach Gov. Gavin Newsom’s desk. Newsom has not indicated whether he will sign or veto the bill, although the Treasury Department opposed his original version of the bill.

title: “Mcdonald S Us Chief Says California Fast Food Bill Unfairly Targets Big Chains Klmat” ShowToc: true date: “2022-12-17” author: “Leonor Walters”

Justin Sullivan | Getty Images The head of McDonald’s US publicly criticized a landmark California bill on Wednesday that would give the state more control over pay for fast-food workers, saying it unfairly targets big chains. The comments by Joe Erlinger, president of McDonald’s USA, come after the California state Senate earlier this week approved a bill that would give a 10-person board the power to raise the industry’s minimum wage to $22 an hour for chains with more than 100 locations nationwide. California’s current minimum wage is $15.50 an hour. The council will also have the power to set security conditions. Supporters of the bill say it will empower fast food workers and help solve industry problems such as unsafe working conditions and wage theft, which can include not paying employees for overtime. But the FAST Act is facing strong backlash from the restaurant industry, which fears the impact on California restaurants and the example it sets for other states. “It imposes higher costs on one type of restaurant while saving another. This is true even if those two restaurants have the same revenue and the same number of employees,” Erlinger wrote in a letter posted on the company’s website Wednesday. For example, Erlinger said a McDonald’s franchisee with two locations would be subject to the bill because it is part of a large national chain. However, he said the owner of 20 restaurants that are not part of a chain would be exempt. “Aggressive wage increases aren’t bad… But if it’s necessary to raise restaurant workers’ wages and protect their welfare – and it is – shouldn’t all restaurant workers benefit?” Erlinger wrote. It’s rare for McDonald’s to speak out publicly against state legislation, though the chain reportedly pushed its franchisees to lobby against the California bill. Nearly 10 percent of McDonald’s restaurants in the U.S. are located in California, according to Citi Research. McDonald’s only operates about 5 percent of its more than 13,000 U.S. locations. Its franchisees handle the rest, but the chain often lobbies on their behalf. In 2019, McDonald’s told the National Restaurant Association that it would no longer oppose federal, state or local minimum wage increases. Other restaurant companies are also fighting the bill. State records show Chipotle Mexican Grill, Chick-fil-A, Yum Brands and Restaurant Brands International are among the chains spending money to pressure California lawmakers to oppose the legislation. The National Restaurant Association, an industry group, has also spent at least $140,000 fighting the bill, according to California records. The organization’s president, Michelle Korsmo, said in a statement that 45 percent of California restaurant operators report that business conditions are worse today than they were three months ago. “The FAST Act is not going to achieve its goal of providing a better environment for the workforce, it will impose outcomes that our communities do not want to see,” he said. A tougher version of the FAST Act that would make franchisees like McDonald’s liable for their franchisees’ labor violations passed the California State Assembly. However, the number of changes made to the Senate version means the bill will have to be voted on again in the assembly or compromised before it can reach Gov. Gavin Newsom’s desk. Newsom has not indicated whether he will sign or veto the bill, although the Treasury Department opposed his original version of the bill.

title: “Mcdonald S Us Chief Says California Fast Food Bill Unfairly Targets Big Chains Klmat” ShowToc: true date: “2022-12-07” author: “Marion Russell”

Justin Sullivan | Getty Images The head of McDonald’s US publicly criticized a landmark California bill on Wednesday that would give the state more control over pay for fast-food workers, saying it unfairly targets big chains. The comments by Joe Erlinger, president of McDonald’s USA, come after the California state Senate earlier this week approved a bill that would give a 10-person board the power to raise the industry’s minimum wage to $22 an hour for chains with more than 100 locations nationwide. California’s current minimum wage is $15.50 an hour. The council will also have the power to set security conditions. Supporters of the bill say it will empower fast food workers and help solve industry problems such as unsafe working conditions and wage theft, which can include not paying employees for overtime. But the FAST Act is facing strong backlash from the restaurant industry, which fears the impact on California restaurants and the example it sets for other states. “It imposes higher costs on one type of restaurant while saving another. This is true even if those two restaurants have the same revenue and the same number of employees,” Erlinger wrote in a letter posted on the company’s website Wednesday. For example, Erlinger said a McDonald’s franchisee with two locations would be subject to the bill because it is part of a large national chain. However, he said the owner of 20 restaurants that are not part of a chain would be exempt. “Aggressive wage increases aren’t bad… But if it’s necessary to raise restaurant workers’ wages and protect their welfare – and it is – shouldn’t all restaurant workers benefit?” Erlinger wrote. It’s rare for McDonald’s to speak out publicly against state legislation, though the chain reportedly pushed its franchisees to lobby against the California bill. Nearly 10 percent of McDonald’s restaurants in the U.S. are located in California, according to Citi Research. McDonald’s only operates about 5 percent of its more than 13,000 U.S. locations. Its franchisees handle the rest, but the chain often lobbies on their behalf. In 2019, McDonald’s told the National Restaurant Association that it would no longer oppose federal, state or local minimum wage increases. Other restaurant companies are also fighting the bill. State records show Chipotle Mexican Grill, Chick-fil-A, Yum Brands and Restaurant Brands International are among the chains spending money to pressure California lawmakers to oppose the legislation. The National Restaurant Association, an industry group, has also spent at least $140,000 fighting the bill, according to California records. The organization’s president, Michelle Korsmo, said in a statement that 45 percent of California restaurant operators report that business conditions are worse today than they were three months ago. “The FAST Act is not going to achieve its goal of providing a better environment for the workforce, it will impose outcomes that our communities do not want to see,” he said. A tougher version of the FAST Act that would make franchisees like McDonald’s liable for their franchisees’ labor violations passed the California State Assembly. However, the number of changes made to the Senate version means the bill will have to be voted on again in the assembly or compromised before it can reach Gov. Gavin Newsom’s desk. Newsom has not indicated whether he will sign or veto the bill, although the Treasury Department opposed his original version of the bill.

title: “Mcdonald S Us Chief Says California Fast Food Bill Unfairly Targets Big Chains Klmat” ShowToc: true date: “2022-12-09” author: “Bruce Gellings”

Justin Sullivan | Getty Images The head of McDonald’s US publicly criticized a landmark California bill on Wednesday that would give the state more control over pay for fast-food workers, saying it unfairly targets big chains. The comments by Joe Erlinger, president of McDonald’s USA, come after the California state Senate earlier this week approved a bill that would give a 10-person board the power to raise the industry’s minimum wage to $22 an hour for chains with more than 100 locations nationwide. California’s current minimum wage is $15.50 an hour. The council will also have the power to set security conditions. Supporters of the bill say it will empower fast food workers and help solve industry problems such as unsafe working conditions and wage theft, which can include not paying employees for overtime. But the FAST Act is facing strong backlash from the restaurant industry, which fears the impact on California restaurants and the example it sets for other states. “It imposes higher costs on one type of restaurant while saving another. This is true even if those two restaurants have the same revenue and the same number of employees,” Erlinger wrote in a letter posted on the company’s website Wednesday. For example, Erlinger said a McDonald’s franchisee with two locations would be subject to the bill because it is part of a large national chain. However, he said the owner of 20 restaurants that are not part of a chain would be exempt. “Aggressive wage increases aren’t bad… But if it’s necessary to raise restaurant workers’ wages and protect their welfare – and it is – shouldn’t all restaurant workers benefit?” Erlinger wrote. It’s rare for McDonald’s to speak out publicly against state legislation, though the chain reportedly pushed its franchisees to lobby against the California bill. Nearly 10 percent of McDonald’s restaurants in the U.S. are located in California, according to Citi Research. McDonald’s only operates about 5 percent of its more than 13,000 U.S. locations. Its franchisees handle the rest, but the chain often lobbies on their behalf. In 2019, McDonald’s told the National Restaurant Association that it would no longer oppose federal, state or local minimum wage increases. Other restaurant companies are also fighting the bill. State records show Chipotle Mexican Grill, Chick-fil-A, Yum Brands and Restaurant Brands International are among the chains spending money to pressure California lawmakers to oppose the legislation. The National Restaurant Association, an industry group, has also spent at least $140,000 fighting the bill, according to California records. The organization’s president, Michelle Korsmo, said in a statement that 45 percent of California restaurant operators report that business conditions are worse today than they were three months ago. “The FAST Act is not going to achieve its goal of providing a better environment for the workforce, it will impose outcomes that our communities do not want to see,” he said. A tougher version of the FAST Act that would make franchisees like McDonald’s liable for their franchisees’ labor violations passed the California State Assembly. However, the number of changes made to the Senate version means the bill will have to be voted on again in the assembly or compromised before it can reach Gov. Gavin Newsom’s desk. Newsom has not indicated whether he will sign or veto the bill, although the Treasury Department opposed his original version of the bill.