On Friday, January 13, 2023, a Sacramento County Superior Court judge issued a preliminary injunction to prevent the implementation of California’s FAST Recovery Act (the “Act”) (AB 257). The law, which was pending a statewide referendum, would have established a Fast Food Council that would set industry-wide standards for wages, working hours, and other working conditions related to the health and safety of fast food employees. It was set to go into effect at the beginning of this year.
Opposition to AB 527
Prior to the preliminary injunction issued this month, a lawsuit was filed by “Save Local Restaurants”, a coalition of small California small business owners, restauranteurs, franchisees, and related entities who oppose the Act. On December 30, 2022, a temporary restraining order was granted, restraining the State of California from implementing, enforcing, or taking any action to effectuate the Act.
What Does the Preliminary Injunction Do?
In short, the preliminary injunction prevents the implementation or enforcement of AB 257. The preliminary injunction will remain in effect unless and until either:
- County election officials and the Secretary of State determine that the referendum petition failed to qualify for the ballot; or
- A majority of voters defeat the referendum and approve the Act in the 2024 election.
MNK Law will continue to monitor developments related to the FAST Recovery Act. For more information on the Act, please get in touch with us at info@mnklawyers.com.
This material is provided for informational purposes only. It is not intended to constitute legal advice, nor does it create a client-lawyer relationship between MNK Law and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material.
