Proposed bill in California Legislature would be a job-killer for Fresno’s restaurants
In the spirit of this Sunday’s big game, the Fresno Chamber of Commerce is officially calling “interference” on the Fast Food Accountability and Standards Recovery Act (Assembly Bill 257 — Holden). Last week, the California Assembly passed AB 257 by the narrowest margin possible, moving the legislation to the Senate. The Fresno Chamber opposes this bill because of the damage it will cause to the local restaurant community and Fresno’s overall economy.
AB 257 unnecessarily intervenes in how the state deals with fundamental workplace issues. It sets aside existing labor laws in favor of a new set of rules that will be developed and enforced by 11 unelected political appointees. The act envisions a new, independent regulatory “council” with unprecedented authority to draft and enact workplace rules. However, instead of helping workers, the bill makes it more difficult for local franchisees to protect workers. The bill will create outsized harm to the Fresno economy.
First, it interferes with the important restaurant community and the potential for job growth. According to the California Employment Development Department, the number of restaurant jobs is expected to grow by 34% through 2028. In addition to food preparation and serving, this also includes jobs such as ordering supplies, keeping records and accounts, pricing and menu planning. These positions are a critical part of the overall recovery and growth in Fresno. If AB 257 is passed, it will severely hinder local restaurant owners from achieving this job growth rate and prevent local residents from enjoying the benefits of a robust job market.
Second, it interferes with other industries. The restaurant community in California is supported by a large and complex supply chain. Construction, equipment and supplies are all tied to food-service development and operation. Likewise, agriculture is particularly important. Fresno County is home to more than 1.4 million acres of productive pasture and farmland that sells food on a commercial scale, as well as the burgeoning farm-to-fork movement. If the restaurant community were to slow down or recede, so too will food entering the restaurant supply chain. For local growers, this could be another burden on top of precarious water deliveries.
Third, AB 257 interferes with the established governing process for which legislators were elected. AB 257 is free of meaningful oversight by legislators or the governor. The legislation calls for a statewide council as well as a local council for cities larger than 200,000 people. The state and local councils will have the authority to overrule regulations passed by state agencies. Legislators are only required to “review” rules passed by the councils. Recommendations from the council are still automatically enacted after a 60-day review period, with or without legislative approval. We believe it is reasonable to expect legislators to do the jobs they were elected to do and stand up for California’s already rigorous regulatory processes.
Overall, this bill will cripple the franchising model that has helped countless entrepreneurs go into business. AB 257 will reverse decades of progress made by minority small business owners who have achieved success in the franchise model. Because it disincentivizes hiring, it will hinder owners and managers from working with employees such as students, family caregivers, or working parents who seek flexible or part-time work arrangements.
This legislation could not come at a more perilous time. Even in the worst of the COVID-era, California restaurants complied with regulations and demonstrated how businesses can safely open and maintain operations. An analysis of data from the Los Angeles County Health Department when the pandemic was at its most urgent levels showed restaurants were linked to less than 4% of coronavirus outbreaks in non-residential settings. This bill makes it more difficult for local franchisees to protect workers by removing them from day-to-day decision making.
As professional football takes center stage, we are similarly inspired to take on the challenge presented by job-killing legislation. The Fresno Chamber of Commerce opposes AB 257. Elected legislators in the California Senate should reject this bill.
Amy Fuentes is chief operating officer of the Fresno Chamber of Commerce.
