McDonalds President Says California FAST Act Will Kill Restaurants

Keli Mah, President of McDonalds, has voiced her opposition to the California FAST Act—or Fair Accountability and Strategic Training Act of 2021. The FAST Act, if passed, would implement sweeping changes to wage and scheduling practices, likely threatening many small and large restaurants in the service industry, including McDonalds.

The Issue

Mah is arguing that the California FAST Act will have a devastating impact to restaurants in the state. The Act would require employers to adopt new and costly practices, such as providing employees a one-month notice for scheduling changes, 14 days’ advance notice of their work schedule, and specific pay for certain hours worked outside of the regular schedule.

McDonalds argues that these regulations would be difficult for businesses to meet, potentially creating an unsustainable situation for them and their employees. Mah suggests that if the bill does pass, it would force restaurant owners to lay off employees, cut back on benefits, and potentially close down altogether.

A Looming Threat

The FAST Act is currently making its way through the legislative process and is slated to go into effect as soon as July 1, 2021. Mah has urged lawmakers to consider the impacts such a bill would have on businesses, noting that the proposed regulations could particularly hurt mom-and-pop restaurants and threaten their survival.

McDonalds is one of many businesses that have spoken out in hopes that the bill will be amended or withdrawn. Several other companies in the industry have released statements opposing the Act, including Yum Brands and Taco Bell.

What the Future Holds

At this point, it is unclear what will come of the California FAST Act. With the growing opposition to the bill and the pressing deadline, lawmakers may need to act soon to avoid infliction further damage to the restaurant industry.

Below is summary of the potential impacts of the California FAST Act:

  • Businesses: Could be forced to lay off employees, cut back on benefits, and potentially close down.
  • Employees: Could experience fewer work hours and job security.
  • Mom-and-Pop Restaurants: Could face closure due to regulations under the Act.

It remains to be seen what will happen with the California FAST Act, but the threat it poses is real, and the time to act is now. Hopefully, lawmakers will listen to the voices of business owners and take action to avoid further disruption to the restaurant industry.