Creation of an unelected Fast Food Council to enact new industry standards has been halted by the courts after a voter referendum opposing it was filed with the California Secretary of State.
Sacramento Superior Court Judge Shellyanne Chang on Friday granted a preliminary injunction that halts implementation of AB 257 until signatures are verified to put the measure before voters in the 2024 general election.
The Save Local Restaurants coalition had filed suit after the state said it would go forward with AB 257 while signatures were being verified.
“Today’s court decision protects the rights of over one million California voters who demanded their say on this law before bearing its burden,” the coalition said in a news release. “We appreciate the court upholding the state’s 100-year-old referendum process, as well as the well-established legal precedent that ensures California voters are able to consider the laws passed by their legislature.”
More than 1 million signatures to overturn AB 257 were submitted to the Secretary of State’s office last month.
California already has the most labor laws of any state and allowing the council to establish a host of new regulations would present another layer of difficulty for already struggling small businesses, said John Kabateck, California state director for the National Federation of Independent Business.
“The more voters understand the impact this will have on working families, on small businesses, and on community tax dollars, the more that they just aren't buying it,” Kabateck said.
In a state where two-thirds of the population goes to a quick service restaurant once a week, the FAST law would raise food prices even higher, Kabateck said.
“Clearly Californians are uncomfortable with allowing an unelected panel of political appointees, who do not speak for small business, to adjudicate and determine the very future of one industry,” Kabateck said. “The fact that we've seen overwhelming referendum signatures come in, combined with study after study showing the decrease in support for AB 257, tells us that voters know this won’t just hurt restaurants, this will ripple out to many other industries in the state.”