On January 13, 2023, a Sacramento County Superior Court judge issued a preliminary injunction to stop the controversial Fast Food Accountability and Standards Recovery Act or “FAST Recovery Act” (AB 257) from taking effect, pending a vote by California voters.  Previously, on December 30, 2022, the court had issued a temporary restraining order against the new law, which was signed by Gov. Newsom in September 2022.

As we previously reported here, if allowed to take effect, the FAST Recovery Act would have established a Fast Food Council (“Council”), consisting of 10 unelected members, to determine minimum wages and workplace standards for fast food industry workers.  The controversial law was challenged by a coalition entitled Save Local Restaurants, comprised of small business owners, restaurateurs, franchisees, employees, consumers and community-based organizations.

In addition to this legal challenge, Save Local Restaurants is backing a statewide effort to overturn the FAST Recovery Act through a referendum on the California ballot in November 2024.  If and when the referendum challenging AB 257 qualifies for the ballot, the law will be put on hold until voters have a say in November 2024.  The current freeze will remain in effect unless and until (1) county election officials and the Secretary of State determine that the referendum petition failed to contain sufficient valid signatures to qualify for the ballot; or (2) AB 257 is approved by a majority of California voters if the referendum petition qualifies for the ballot.

We will continue to monitor the FAST Recovery Act and provide any relevant updates.