“Devastating financial blow” – McDonald’s franchise slams Newsom’s fast-food law as “draconian” claiming it will cost “$250,000 per restaurant”

McDonald’s franchise group blasted California’s bill to increase wages for fast-food workers, claiming it will “result in a devastating financial blow.”

The new bill signed into law

DGHJ4577 SFHJ5678 SFGHJJKFFJ556777 newsom california gov
Illustration. Image credit: Sheilaf2002 via Depositphotos

The new AB 1228 legislation, or the Fast Food Franchisor Responsibility Act, set a minimum wage rate of $20 per hour, making it the highest in the country. Governor Newsom said it was “a remarkable moment.” However, not everyone is happy with the new law.

Newsom justified the bill

shutterstock 2189760735
Image credit: Sheila Fitzgerald / Shutterstock.com

The Governor expressed that the idea that only teens work in the industry is untrue, saying, “That’s a romanticized version of a world that doesn’t exist.” He added, “We have the opportunity to reward that contribution, reward that sacrifice, and stabilize an industry.”

NOA blasted the new bill

Illustration. Image credit: Shutterstock

NOA, or the National Owners Association, represents over 1000 McDonald’s restaurants. The organization blasted the bill for its “draconian” rules. One of the rules includes the future increase of minimum wages.

NOA explained the shortcomings

angry waitress 675x1200 1
Illustration. Image credit: Shutterstock

NOA said that 95% of California’s 1,300 McDonald’s restaurants are locally owned and operated by small business owners. Fox Business obtained the memo saying, “The new AB 1228 legislation has been voted into law and will result in a devastating financial blow to California McDonald’s franchisees at a projected annual cost of $250,000 per McDonald’s restaurant.”

It starts in April 2024

angry waitress
Illustration. Image credit: Depositphotos

Fast food workers must wait until April 2024 to receive $20 per hour. There will be a small bump on January 1, 2024, when the wave will rise from $ 15.50 to $16 per hour.

NOA’s fears

waitress smile 675x1200 1
Illustration. Image credit: Shutterstock

The National Owners Association expressed fears that this could become a nationwide issue, Fox Business-obtained memo says, “We need to remain unified so that this can not gain a foothold anywhere else.”

Inside the controversial bill

df09g80h8 v court law judgesg098
Illustration. Image credit: Depositphotos

The law creates a Fast Food Council that can increase that wage yearly through 2029 by 3.5% or the change in averages for the U.S. Consumer Price Index for urban wage earners and clerical workers, whichever is lower.

Fast food workers are underpaid

mcdonalds 675x1200 1
Image credit: 8th.creator via Shutterstock.com

According to the U.S. Bureau of Labor Statistics, California’s fast food workers earn an average of $16.60 per hour, or a little over $34,000 per year, below the California Poverty Measure for a family of four.

The next topic will be healthcare workers

Illustration, Image credit: Depositphotos

The workgroup is working on creating a bill that would allow healthcare workers to gain $25 per hour over the next decade. Due to the Medicaid program, creating a proposal will be much more challenging.

Raising wages for fast food workers was a lengthy process

shutterstock 1206996340
Illustration. Image credit: Shutterstock

Newsom commented it was “a tectonic plate that had to be moved,” which included over 100 hours of negotiations between the industry and the workers.

Newsom on book bans

Porth36784 dhhDGHJSSSQW5577 ffhDHE
Illustration. Image credit: Sheilaf2002 via Depositphotos

The Governor signed a bill to curb book bans. He stated, “Remarkable that we’re living in a country right now in this banning binge, this cultural purge that we’re experiencing all throughout America and now increasingly here in the state of California where we have school districts banning books, banning free speech, criminalizing librarians and teachers.”

Schools who break the law will be fined

dfhj3678232 dhdhgj367 book banned lock read
Illustration. Image credit: Depositphotos

Schools that ban books based on sexual orientation or race will be fined. Boards had to follow anti-discrimination laws, but those requirements lacked financial penalties that will now be imposed.

More From BuzzLoving

Shutterstock 485801335 1 1
Illustration. Image credit: Depositphotos

See a grandma refuse to return a baby to her son: It’s not kidnapping, I’m her grandma”: Grandma Refuses To Return Her Grandchild

“Not sure I’m going back” – Teacher Was Left In Tears After Students Recorded Videos Of Her And Posted Them Online

shutterstock 2142729487
Illustration. Image credit: Shutterstock

A teacher shared her disappointment after her students filmed her and shared the videos on social media: “Not sure I’m going back” – Teacher Was Left In Tears After Students Recorded Videos Of Her And Posted Them Online

Bouncer Catches Evil Man Putting Drugs in Young Woman’s Drink and Takes Matters into His Own Hands

man and woman drinking
Illustration. Image credit: Depositphotos

A bouncer revealed how he caught a guy who was using illegal substances to make young women his prey: Bouncer Catches Evil Man Putting Drugs in Young Woman’s Drink and Takes Matters into His Own Hands

20 Irresistible Traits That Define a TRUE Manly Man

Rido 1 1
Image credit: Rido via Canva.com

Discover 20 must-have characteristics that distinguish a truly manly man and see how many of them you or your man possess: 20 Irresistible Traits That Define a True Manly Man

Mother Brought Her Dead Toddler To Daycare, Acting Like He Was Sleeping

lekcej 1
Illustration, Image credit: leckej via Canva.com

A TikTok user shared a disturbing story about a mom who brought a dead child into daycare: Mother Brought Her Dead Toddler To Daycare, Acting Like He Was Sleeping