Millions are raised by fast food chains to oppose the California wage law.
A new California law that could raise the state's minimum wage for the fast food industry to as much as $22 an hour next year is being challenged by McDonald's Corp.,
Starbucks Corp., Chipotle Mexican Grill Inc., and other large restaurant chains. The groups are teaming up to spend millions of dollars in this effort.
The coalition known as "Save Local Restaurants" announced on Friday that it had raised over $12.7 million to oppose the FAST Recovery Act.
Individual franchisees, including the owners of KFC and McDonald's outlets, have donated $2 million while corporate brands have provided $9.9 million.
According to the coalition, trade associations make up the remainder.In order to allow voters to determine whether to permanently stop the law in 2024,
the coalition seeks to delay the bill's implementation, which was scheduled to start on January 1.
For the referendum to be valid and to halt the law's execution while it is being decided, opponents must gather hundreds of thousands of signatures.
The current minimum wage in California is $15 per hour, and it will rise by 50 cents the following year. The minimum would increase yearly in line with inflation.
In order to put the new law on hold and qualify for a referendum on the November 2024 ballot, opponents must turn in around 623,000 valid voter signatures by December 4.
In California, proponents of referendums frequently spend millions of dollars to acquire the necessary signatures.