Senate Standing Committee on Labor, Public Employment and Retirement

This is, for me, I think, such an important decision-making body. It's a time where we need to really focus on innovative policies. It's a time where we see income inequality widening in our communities. We see gender and racial disadvantage in our job creation. We see a really, really disintegrating safety net and job quality that we have to continue to keep from deteriorating before our very eyes.

And that, combined with all of the technology changes and the sort of realignment and assignment and arrangement of work, is widening our economic gaps. And this Committee, this is the Committee where we can bring labor and business into coalition to bring our economies closer together. And I really am excited to be working with my colleagues to do that. And we know that that will create a more sustainable future for everyone. So with that, we are going to move into our first Bill.

And I see Assemblymember Holden is with us. We have one item today, AB 610, and we're going to first establish a quorum. So, Committee Assistant, will you call the role?

All right. [Roll Call].

Thank you. We have a quorum. So, Mr. Holden, please begin.

Well, thank you. First of all, Senator, let me also congratulate you on being chair of this important Committee. You've been a part of this Committee for a while, and you certainly understand the importance, and you've already articulated the heartbeat of the things that are so important to the Labor Committee in terms of protecting and creating great opportunities in the workplace for all of our workers.

I'd also like to thank Senator Cortese for his leadership as well, and thank him for continuing to be a part of this important body. I'd secondly like to thank the Committee staff and you, Madam Chair, for creating this opportunity and working with us on what we think is a very important Bill. It's AB 610. Members, as you may recall, last year the Legislature approved and the Governor signed AB 1228, which created a path forward to resolve employer community concerns around the content of AB 257, which was chaptered in 2022 while preserving fast food workers hard fought efforts to secure a seat at the table and a means to raise standards. However, prior to the close of session last year, I submitted a letter to the journal indicating that I wanted to clarify the intent of one aspect of AB 1228: There is a need to exempt additional restaurants from the definition of fast food restaurant, including such restaurants in airports, hotels, event centers, theme parks, museums and certain other locations.

While AB 1228 establishes a minimum wage of $20 per hour starting April 1 of this year, this Bill, AB 610, exempts the above mentioned fast food restaurants, many of whom have historically established compensation and working conditions in excess of the standards set by AB 1228. I'd like to call on our first witness who is joining us today, Kimberly Rosenberg, the California State Council, SEIU.

Thank you, Madam Chair and Members. Kimberly Rosenberger with SEIU. When AB 1228 passed, the intent was to lift worker voices and raise wages. We believe AB 610 is in furtherance of that goal by addressing areas of overlap where AB 1228 may have inadvertently created a ceiling rather than a floor. I'm happy to answer any technical questions. And for the reasons stated, strongly urge your aye vote. Thank you.

Thank you for your testimony.

And there's one other. Mario Yedidia, Western Region Political Director, International Vice President of UNITE HERE.

Good morning. Thank you, Chairwoman Smallwood-Cuevas and Members from UNITE HERE, the Hospitality Workers Union. Just wanted to add that the fast food restaurants and the categories that Mr. Holden mentioned are often operated in conjunction with larger enterprises that have distinct economics and captive customer bases. And look, these are restaurants that have workers who often have established compensation standards that are $10 or even $20 an hour above what AB 1228 provides for. It furthers the spirit and the intent of the Bill. And we ask for your aye vote. Thank you so much.

Thank you for your testimony. Is there anyone else here in the room who would like to speak in support of this Bill? Please say your name, affiliation and position.

Madam Chair and Members, Sarah Flocks, California Labor Federation, in support. Thank you.

Honorable Madam Chair and Members, Amy Hines-Shaikh with Wildcat Consulting, representing UNITE HERE Local 11, in strong support. Thank you.

Good morning, Madam Chair and Members. Obed Franco on behalf of the California Hotel and Lodging Association, in support.

Okay, I think that's it on support.

Now we'll move to opposition. Are there any opposition witnesses giving testimony today? Okay. Anyone 'me, too' in opposition on this Bill? Seeing none, we'll return to our dais and our great Members, any discussions?

Thank you much. I just want to applaud the author and all of the people who work so hard. I know this was difficult, but everybody had the same goals, and that's what I think made it very possible. So I just really appreciate the hard work that everybody put into it on all sides.

Senator Cortese, thank you.

Beat me to it. Thank you, Madam Chair. Likewise, I just want to acknowledge the author and all the parties that came together under what were some pretty tense circumstances, I think, for a while, to make sure that this solution came forward to us, giving us an opportunity to keep everything moving forward. And I think we're all confident here in this Committee that this is going to continue to be of landmark significance going forward. So thank you.

Thank you very much, colleagues, for those comments. And again, yes, thank you so much, Mr. Holden, for bringing this Bill forward and lifting the floor for fast food workers. It's so incredibly important to our economy. And I think this narrow exemption captures workers who are not directly employed by fast food, but may do similar work and who receive compensation that might be higher while working in those facilities. And this is just making sure that they are protected.

So thank you for the Bill and for those changes. And we have, oh, we'll ask you to close and then we'll move to the vote.

I respectfully ask for your aye vote.

Thank you. We have a motion on the floor from Senator Durazo. This Bill is do pass, but first refer to the Committee on Reparations. Committee Assistant. I'm sorry. Committee on Appropriations. Will you please call the roll?

For File Item 1, AB 610. [Roll Call].

This Bill is moved, five to zero. This Bill is out. Thank you. The Committee will now adjourn. That concludes, and that concludes our agenda for today. This Committee will now adjourn. That was.