California Fast Food Council Faces Uncertain Future
The California Fast Food Council, which was established under Governor Gavin Newsom’s ambitious collective bargaining plan, is currently in a precarious situation. It lacks a chairman, hasn’t convened in over a year, and there are still around $1.1 million in taxpayer funds owed to the now-defunct organization.
Initially proposed as a strong advocate for wage and working condition improvements in one of the state’s largest low-wage sectors, it has devolved into a stagnant bureaucracy. Fast-food workers have expressed their frustration, claiming the state set up a framework to increase wages but then neglected the oversight necessary to maintain it.
The council was created in 2023 as part of a political compromise after ongoing disputes about fast food salaries.
This agreement introduced a $20 minimum wage for employees at fast-food chains with at least 60 outlets nationwide. It also aimed to manage wages, safety standards, and workplace conditions for around 630,000 workers in California. However, the agency meant to enforce these regulations has been mostly inactive since its inception.
State law mandates that the council meet at least twice a year. While it did meet once in 2024, activities have since stalled.
Last year, only two subcommittee meetings were held, with the latest taking place in February 2025.
Additionally, the resignation of the House Speaker, Nick Hardeman, after Newsom appointed him to another state position, has further complicated matters.
The council currently includes members such as Michaela Mendelsohn, Aneisha Williams, and others, along with non-voting representatives from GO-Biz and the Department of Industrial Relations.
Despite the suspension of operations, the council is still fully funded. Taxpayers are annually covering about $1.1 million for the salaries, benefits, and operational costs of the four state employees who remain on the payroll during this standstill.
The state’s Department of Labor and Workforce Development noted that meetings were suspended due to the lack of a chairperson. The council was intended to be a pivotal player in California’s new fast-food wage system, capable of adjusting compensation and setting industry standards. Instead, after rolling out significant wage hikes, it appears unable to fulfill its role.
The political tensions leading to the council’s creation were already intense. In 2022, a bill to elevate fast food salaries to $22 per hour was passed by lawmakers.
This prompted the industry to push back with a petition to repeal, sparking strikes by workers across California who advocated for higher pay. A resolution was finally achieved with Assembly Bill 1228, written by Democratic Rep. Chris Holden, which capped wages at $20 and formally established the Fast Food Council. Newsom signed this bill on September 28, 2023, appointing seven out of the nine members.
Nonetheless, Parliament is also required to deliver performance reports to itself every three years, even though a full meeting hasn’t occurred in over a year.
Meanwhile, fast-food restaurant owners are voicing concerns about California’s controversial $20 minimum wage, claiming that Sacramento’s regulations are crippling profits and pushing local franchises toward bankruptcy.
Many business owners say they’ve had to reduce employee hours, increase menu prices, and even adopt AI cash registers in an effort to navigate tough state regulations. According to a report from the California Legislature in July 2025, California’s $20 fast food minimum wage has led to an estimated 18,000 job losses compared to trends in other states.
