While the Secretary of State continued to count signatures to determine if a potential referendum challenging the FAST Recovery Act (AB 257) will make it on the ballot, the Sacramento Superior Court has issued a preliminary injunction prohibiting the implementation or enforcement of AB 257. The injunction will remain in effect unless and until either: 1) county election officials and the Secretary of State determine that the referendum petition failed to qualify for the ballot; or 2) a majority of voters defeat the referendum and approve the FAST Recovery Act in the 2024 election.
The preliminary injunction, which followed a temporary restraining order granted on December 30, 2022, is a victory for Save Local Restaurants, a coalition of California small business owners, restaurateurs, franchisees, and related entities that brought the petition to enjoin enforcement of the FAST Recovery Act.
Governor Newsom signed AB 257 into law in September 2022. If it ultimately goes into effect, it will establish a Fast Food Council comprising fast food employees, worker advocates, franchisors, franchisees, and government officials within the Department of Industrial Relations that will set industry-wide standards for wages, working hours, and other working conditions related to the health, and safety of fast food workers.
Jackson Lewis will continue to track developments related to the FAST Recovery Act. If you have questions about the FAST Recovery Act or related issues, contact a Jackson Lewis attorney to discuss.