Two years ago, a hotly contested law imposing a $20-per-hour minimum wage on franchised fast food outlets took effect.
The legislation, Assembly Bill 1228, emerged from months of intense political conflict, pitting fast food behemoths such as McDonalds against service worker unions, arguing not only over the wage itself but what the industry saw as an effort to undercut its business model.
Eventually the industry agreed to a higher wage in exchange for unions leaving the franchise system unmolested and the creation of a commission to oversee wages and working conditions.
Ever since, fast food corporations and labor interests have jousted over the law’s impact, with both waving economic reports to bolster their positions.
The industry warned that the FAST Act, as it was dubbed, would push fast food prices upward and employment opportunities downward. Unions and their allies contended it would benefit fast food workers with few, if any, negative impacts.
The situation cried out for independent evaluation, not only to settle the arguments but to provide guidance on the consequences of political intervention on wages in any industry.
Thankfully, we may have that study.
Hellbound and Down 