The mandatory raise would apply to all fast food restaurants in California that are part of a chain with at least 60 locations nationwide. The agreement ends an tense standoff between labor unions and the fast food industry that started last year when Democratic Gov. Gavin Newsom signed a law creating a Fast Food Council with the authority to raise wages of fast food workers up to $22 per hour. In exchange for a $20 minimum wage, labor unions have withdrawn their legislation to make fast food companies liable for their franchise operators' labor violations and lawmakers have stripped funding for the Industrial Welfare Commission. The Fast Food Council created in the original legislation would still exist, but it would only have the authority to set wages, not workplace standards.

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Persons: Ingrid Vilorio, ”, Vilorio, Gavin Newsom, Newsom, Kathy Fairbanks, Sean Kennedy, Joseph Bryant, Olga R, Rodriguez Organizations: San Francisco Bay Area, Democratic Gov, Food, Democratic, Industrial Welfare Commission, Food Council, National Restaurant Association, Service Employees International Union Locations: SACRAMENTO, Calif, California, San Francisco Bay, U.S, San Francisco