McDonald’s CEO lashes out against California’s new fast-food law, calling it ‘costly and job-destroying, Joe Erlinger, the President of McDonald’s USA, expressed his opposition to the recent passing of a fast-food law that could potentially raise hourly restaurant wages to $22 an hour in California. Erlinger, who made $7.4 million in 2021, said the law would make it “all but impossible to run small business restaurants” in the state. The law, AB 257, known as the FAST Act, was signed into law last year, but a referendum backed by fast-food chains including McDonald’s, Chipotle, and In-N-Out will put the law up for a vote in November 2024.
Erlinger’s open letter titled “California keeps looking for ways to raise prices, drive away more businesses and destroy growth through bad policy and bad politics” called on lawmakers, business owners, and voters to consider the negative impact the law could have. Supporters of the union-backed FAST Act argue it will improve working conditions for thousands of fast-food workers in the state, but the restaurant industry claims the law would hurt small business owners and raise costs for California fast-food restaurants by $3 billion.
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The president of McDonald’s USA, Joe Erlinger, has publicly criticized California lawmakers for passing a fast-food law that he believes would make it “all but impossible to run small business restaurants” in the state. The law, known as AB 257 or the FAST Act, could raise hourly restaurant wages to $22 an hour in the state. Erlinger’s open letter was published after the state approved a referendum backed by fast-food chains that would put the law up for a vote in November 2024.
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Erlinger stated in the letter that the company was not against increasing the minimum wage, but that the FAST Act would be detrimental to small businesses in the state. He also noted that the majority of McDonald’s nearly 14,000 restaurants in the US are run by franchisees, with hundreds of stores operating in California.
A coalition of restaurant industry organizations led by McDonald’s, Chipotle, and In-N-Out supported the referendum. Supporters of the union-backed FAST Act argue that the law would improve working conditions for thousands of fast-food workers in the state. However, the industry’s trade organization, National Restaurant Association, has said that the law would hurt small business owners and that higher wage mandates could raise costs for California fast-food restaurants by $3 billion.
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Fast-food workers across California have announced plans to strike Thursday and Friday to protest chain support of the referendum to overturn the FAST Act. Union representatives have stated that fast-food workers will fight to defend the landmark law and assert their voices and that the referendum is an attempt by corporations to “buy their way out of anything.”
The president of McDonald’s USA, Joe Erlinger, has criticized California lawmakers for passing a fast-food law that he said would make it “all but impossible to run small business restaurants” in the state, in an open letter on January 25. The law, known as AB 257 or the FAST Act, would raise hourly restaurant wages to $22 an hour in California and be set to be enforced on January 1.
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However, a referendum backed by fast-food chains, including McDonald’s, Chipotle, and In-N-Out, has put the law up for a vote in November 2024, meaning state officials cannot implement the law until then. Erlinger stated that the company supports “responsible increases to the minimum wage”, but believes the law would hurt small business owners and lead to job destruction. Supporters of the law argue it would improve working conditions for fast-food workers in the state.
