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The act would create a state-run 10-member council to set wage and labor standards across the fast-food industry that would be composed of two state officials, along with representatives from unions, workers, and employers.{{ r | NYT_2022-08-29 }}<ref name=NYT_2023-01-25 > {{ cite news | url=https://www.nytimes.com/2023/01/25/business/economy/california-fast-food-workers.html | title=California Voters to Decide on Regulating Fast-Food Industry - Pre-empting a law signed last year, business groups forced a ballot initiative on state oversight of wages and working conditions. | last=Lee | first=Kurtis | newspaper=[[The New York Times]] | date=2023-01-25 | quote=Legislation signed in September by Gov. Gavin Newsom, a Democrat, would set up a 10-member council of union representatives, employers and workers to oversee the fast-food industry’s labor practices in the state. }} </ref> The council is allowed to raise minimum wages for fast food workers, though not beyond $22/hour.{{ r | NYT_2022-08-29 }} Separately, the act requires annual cost of living increases for this new wage floor.{{ r | NYT_2022-08-29 }}
Multiple provisions and reforms are found in the bill. One provision also allows a franchisee to sue a restaurant chain if the franchise contract contains strict terms that leave them no choice but to violate labor law. Those terms could be related to store hours or the employment status of workers. A previous rendition of the bill held liable not only franchisees but also franchisors in the event of a working condition
The council is specifically prohibited from requiring paid-time-off or sick-leave, or making rules relating to worker scheduling.{{ r | NYT_2022-08-29 | p=1 | q=Opponents managed to secure a number of concessions in the State Senate, such as preventing the council from creating sick-leave or paid-time-off benefits, or rules that restrict scheduling. The Senate also eliminated a so-called joint liability provision, which would have allowed regulators to hold parent companies like McDonald's liable for violations by franchise owners.}}
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