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Gov. Gavin Newsom’s Fast Food Council: How to Kill Another Industry

Every business in California already operates under health, safety and employment standards set by state and local laws

By Katy Grimes, March 6, 2024 8:13 am

With California Governor Gavin Newsom mired in “PaneraGate,” after he exempted a billionaire buddy from California’s new $20 minimum wage law, people are asking about this new Fast Food Council the Governor just announced.

Newsom’s friend, Billionaire Greg Flynn owns more than two dozen Panera Bread locations in California, as well as Applebee’s, Pizza Hut, Taco Bell, and Wendy’s, the Globe reported. And Flynn has contributed at least $164,800 to Newsom’s political campaigns, the New York Post reported.

California nearly became the first state in the country to unionize fast food employees in 2022. Instead, fast food franchise owners and restaurant owners “negotiated,” “agreed” (were coerced) to the $20 per hour minimum wage, and by expanding state government to create a new Fast Food Council under the Department of Industrial Relations. The council will set minimum health, safety and employment standards across the California fast food industry – even though every business in California already operates under health, safety and employment standards set by state and local laws. This was just about government expansion and control.

Two bills created this regulatory mess:

In August 2022, Assembly Bill 257 by Assemblyman Chris Holden (D-Los Angeles), enacted the Fast Food Accountability and Standards Recovery Act or FAST Recovery Act and fast food council.

In 2023, Assembly Bill 1228, authored by Assemblyman Chris Holden (D-Pasadena), increased the minimum wage for fast food workers across the state to $20 per hour, and was one of the most contentious bills this year, with only a compromise between the Service Employees International Union (SEIU) and fast food companies managing to keep the bill alive last month.

Prior to passage of AB 1228, California’s minimum wage was $15.50 per hour.

“California is committed to ensuring that the men and women who have helped build our world-class economy are able to share in the state’s prosperity,” said Governor Newsom. “Today’s action gives hardworking fast-food workers a stronger voice and seat at the table to set fair wages and critical health and safety standards across the industry. I’m proud to sign this legislation on Labor Day when we pay tribute to the workers who keep our state running as we build a stronger, more inclusive economy for all Californians.”

Gov. Newsom announced these fast food council appointees late on Friday March 1, 2024, which is usually how politicians try to bury the news. So who are these appointees who have the power to kill an entire industry through anti-business regulations and wage mandates?

Fast Food Council Members:

  • Nick Hardeman (Chair)
  • Michaela Mendelsohn
  • Anneisha Williams
  • Joe Johal
  • SG Ellison
  • Richard Reinis
  • Angelica Hernandez
  • Maria Maldonaldo
  • Joseph Bryant
  • GO-Biz Representative (Non-voting member)
  • DIR Representative (Non-voting member)

From the Governor’s website announcing the appointees, with a short bio on each:

Nicholas Hardeman, of Sacramento, has been appointed Chair of the Fast Food Council. Hardeman has been Chief of Staff to State Senate President pro Tempore Emeritus Toni G. Atkins since 2016. He served as Special Assistant to former State Assembly Speaker John Pérez and to former State Assembly Speaker Toni G. Atkins from 2011 to 2016. Hardeman was Chief of Staff to former State Assembly Speaker pro Tempore Fiona Ma from 2006 to 2011. He was a Policy Consultant for the California State Senate from 2003 to 2006. Hardeman serves on the California Exposition and State Fair Board of Directors, the Brightline Defense Project, and the California Storm. He earned a Bachelor of Arts degree in American Government and Politics from Saint Mary’s College of California. This position does not require Senate confirmation and the compensation is $100 per diem. Hardeman is a Democrat.

SG Ellison, of Sonoma, has been appointed to the Fast Food Council. Ellison has been CEO and Franchisee of Diversified Restaurant Company since 2019, and was previously President from 2014 to 2019. He has been CEO of First Street Development since 2013. Ellison is a member of the Young Presidents’ Organization. He earned a Bachelor of Science degree in Civil Engineering from Arizona State University. This position does not require Senate confirmation and the compensation is $100 per diem. Ellison is registered without party preference.

Angelica Hernandez, of Paramount, has been appointed to the Fast Food Council. Hernandez has been a Cook Trainer at McDonald’s since 2012. This position does not require Senate confirmation and the compensation is $100 per diem. Hernandez is not registered to vote.

Piardip “Joe” Johal, of Pleasanton, has been appointed to the Fast Food Council. Johal has been CEO of Wendy’s of the Pacific since 2002. He was Health, Safety, and Risk Manager for Hewlett-Packard from 1983 to 2003. Johal is Chair of the National Governing Board for Asian Pacific Islander American Public Affairs (APAPA) and a member of the Wendy’s Technology Advisory Council and Indo-American Community Federation. He earned a Bachelor of Science degree in Industrial Engineering from the University of California, Santa Cruz. This position does not require Senate confirmation and the compensation is $100 per diem. Johal is registered without party preference.

Michaela Mendelsohn, of Los Angeles, has been appointed to the Fast Food Council. Mendelsohn has been President and CEO of Pollo West Corp since 1988 and is Founder of TransCanWork. She served on the Los Angeles County Workforce Development Board from 2018 to 2021. This position does not require Senate confirmation and the compensation is $100 per diem. Mendelsohn is a Democrat.

Richard Reinis, of Los Angeles, has been appointed to the Fast Food Council. Reinis has been Partner at Thompson Coburn LLP since 2014. He was Partner at Steptoe & Johnson LLP from 2006 to 2014. Reinis was CEO and General Counsel for Great Circle Family Foods LLC from 2000 to 2006. He was Managing Partner at Reinis & Reinis from 1985 to 2000. Reinis was Founding Partner of the Law Offices of Richard Reinis from 1981 to 1985. He is a member of the Chancery Club and the Max H. Gluck Foundation. Reinis earned a Juris Doctor degree from the University of Southern California School of Law and a Bachelor of Arts degree in History from Princeton University. This position does not require Senate confirmation and the compensation is $100 per diem. Reinis is a Democrat.

Anneisha Williams, of Los Angeles, has been appointed to the Fast Food Council. Williams has been a Shift Leader at Jack in the Box since 2021. She is a member of the California Fast Food Workers Union, formerly Fight for $15. This position does not require Senate confirmation and the compensation is $100 per diem. Williams is a Democrat.

As the Globe reported in August 2022, AB 257 enacted the Fast Food Accountability and Standards Recovery Act or FAST Recovery Act and fast food council.

From the bill language:

The purpose of the council would be to establish sectorwide minimum standards on wages, working hours, and other working conditions related to the health, safety, and welfare of, and supplying the necessary cost of proper living to, fast food restaurant workers, as well as effecting interagency coordination and prompt agency responses in this regard. The bill would define the characteristics of a fast food restaurant, including that the establishment be part of a set of fast food restaurants consisting of 100 or more establishments nationally that share a common brand, or that are characterized by standardized options for decor, marketing, packaging, products, and services.

This bill would require the council to promulgate minimum fast food restaurant employment standards, including standards on wages, working conditions, and training…

Here’s where it becomes particularly alarming for franchisees and their corporate owners:

  • Prohibits a fast food restaurant operator from discharging or in any manner discriminating or retaliating against any employee for any of the following:
    • Making a workplace safety or health complaint or disclosing information.
    • Testifying or participating in a proceeding relating to employee or public health or safety, or any state or local Fast Food Council proceeding.
    • Refusing to perform work the employee had reasonable cause to believe would violate employment, public health and safety laws or would pose a substantial risk to the health or safety of the employee, other employees, or the public.
  • Grants a cause of action to any worker discharged, discriminated or retaliated against for exercising their rights, creates a rebuttable presumption of unlawful discrimination or retaliation for any adverse action taken against the worker within 90 days of the franchisor or franchisee having knowledge of the worker exercising their rights and allows the Labor Commissioner to enforce violations without receiving a complaint.

The California Restaurant Association opposed AB 257:

“AB 257 does nothing to help hard-working California families struggling with these costs, in fact it would only serve to hit their wallets even harder. also harms tens of thousands of counter service restaurants. It would impose increased employee costs and onerous new workplace rules at a time when many are still struggling to get back on their feet after the devastating impacts of the government mandated COVID closures. Many restaurants are struggling with labor shortages and increased costs for food and supply chain delays – all while trying desperately to stay afloat. We should be helping this vital sector of our state’s economy keep their doors open, not actively pursuing measures that would kick them closed.”

As the Globe warned, Expect lawsuits over AB 257 because the Legislature certainly does, but not for what you might think:

“This bill authorizes a cause of action for any employee of a fast food restaurant who is discharged, discriminated or retaliated against for exercising rights established by the FAST Recovery Act. The estimated workload cost of one hour of court time is $956. If 20 cases are filed statewide resulting in 20 hours of court time for each case, costs would be approximately $382,400.”

Obviously there is much more to uncover…
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20 thoughts on “Gov. Gavin Newsom’s Fast Food Council: How to Kill Another Industry

  1. So these unelected bureaucrats that were appointed by a petty wannabe dictator like Hairgel Newsom have the power to kill an entire industry through anti-business regulations and wage mandates? Not surprisingly, four members are registered to vote with the criminal Democrat mafia, one member is not even registered to vote, two are registered without party preference, and not a Republican among them?

    1. Why would Nicholas Hardeman be appointed to be the Chair of the Fast Food Council. He has a useless degree in American Government and Politics and he was Chief of Staff to State Senate President Toni G. Atkins. Other than being a deep-state Democrat hack, it sounds like he has ZERO food industry experience? Maybe he’s a radicalized member of the alphabet mafia just like Toni Atkins is?

    2. I’m wondering the same! Particularly someone that’s not even a registered voter. Newsome’s hair gel has obviously gone into his brain!

  2. This is a NIGHTMARE. ALL of it, and for ALL of us, too, not just fast food restaurants. Not that we expected anything different, and maybe it wouldn’t have mattered anyway to change the totalitarian flavor of it, but the “fast food council” list that Katy Grimes so helpfully researched for this article reminds me of EVERY such group I’ve ever seen; e.g. “citizens’ oversight committees,” “7-11 committees,” etc.; govt-connected committees and councils of all kinds. It is laughably NOT objective, it is politically-connected, it is packed with flattered-to-be-asked (and paid) Karens and Karls who CANNOT WAIT to start drafting the endless (and unnecessary) regulation and demand list. Dem/Marxists, most of them, in spirit if not in name, maybe also some bored rich people, with maybe one or two somewhat normal-looking bios thrown in to the mix. No problem! They can be shouted down or hazed by the rest of ’em, the majority, if needed. This will be like Kafka’s Koffee Klatsch from Hell.
    Then you have our own unscrupulous Gov Gavin Newsom, taking bribes (euphemism: campaign donations) from a high school buddy, ordering legislation and amendments via a more-than-cooperative Asm Chris Holden, which exempts the Gov’s buddy’s biz, Panera Bread, with precise language targeting it but not naming it (what a coincidence!), about which Asm Holden (who also owns, or did own, a probably-also-affected Subway Sandwich franchise), then denies knowledge of on camera. Seriously?
    NONE OF THIS LEGISLATION CAN REMAIN ON THE CALIFORNIA BOOKS.
    In addition to the Gov & Friends and the legislator skullduggery, this is totalitarian, it’s corrupt, it’s unseemly, it’s un-American, it’s unworkable, it rewards all the wrong people, and it’s only a matter of time before there is a domino effect of RUINED businesses, and not only fast food businesses. A commenter on a past article about this topic said “it will be like the CCP controlling State-Owned Enterprises in China.” No kidding! Sure, this all looks purposeful from our CA “leadership.” Never mind, it MUST be deep-sixed, ASAP. Otherwise there is no end to it.
    As I recall the Restaurant Association managed to collect enough signatures to get a referendum on November’s ballot to kill this one? Did this happen? For AB 257 and in opposition to the Fast Food Council? Can’t remember the details now. Especially with an Election Day “hangover.” No drinking, just Election Day. 🙂

  3. Hardeman : Democrat (Long-time political hack – has no apparent private industry experience, just Democrat staffing experience)
    Ellison : member of the Young Presidents’ Organization – registered without party preference. (code for : Democrat)
    Hernandez : Cook Trainer at McDonald’s since 2012 – not registered to vote (Why??? Immigration status???)
    Johal : Chair of the National Governing Board for Asian Pacific Islander American Public Affairs (APAPA) and a member of the Wendy’s Technology Advisory Council and Indo-American Community Federation (aka “Community Organizer”) – registered without party preference.
    Mendelsohn : served on the Los Angeles County Workforce Development Board from 2018 to 2021 – Democrat.
    Reinis : Democrat / Lawyer (DOUBLE trouble…)
    Williams : Shift Leader at Jack in the Box since 2021 – member of the California Fast Food Workers Union, formerly Fight for $15 – Democrat

    Good luck California fast-food industry – you are in for a ROUGH ride, courtesy of Governor Period Fullstop…. and better look elsewhere for reasonably priced food California – you’d better get to the bottom of the voter rolls and electronic voting machines, because the Democrats have us by the throat…..

    1. ^^^ Forgot to append this pearl of a quote from Governor Period Fullstop :
      “California is committed to ensuring that the men and women who have helped build our world-class economy are able to share in the state’s prosperity,” said Governor Newsom. “Today’s action gives hardworking fast-food workers a stronger voice and seat at the table to set fair wages and critical health and safety standards across the industry. I’m proud to sign this legislation on Labor Day when we pay tribute to the workers who keep our state running as we build a stronger, more inclusive economy for all Californians.”

      Why not mandate a $50 or $100 per hour wage, Governor Fullstop??? Since you’re pandering for votes, why not go REALLY big and give your constituents a REAL “fair/living wage”??? You jackass….

      1. A smart aleck metaphorically on site for the Gov’s pronouncement could have truthfully said in the background, “too bad those hard-working fast-food workers you say you champion won’t have any jobs at all by the time you get through with them, you unbelievable phony.”

  4. Its another committee where taxpayers get shelled with higher prices, less dining, and more robots to interact with

  5. Gavin’s capitol fairies could improve our state best by calling in sick whenever they wake up with lots of ideas.

  6. This is all fodder for the upcoming Newsom recall. Hopefully this will be a galvanizing event for conservatives that will sustain organized energy to move California in the direction of common sense. It’s good to see the passion.

  7. Are your lives better with more government parasites controling your life? Maybe you idiots should start thinking before voting, cause this is the stupid shit you get from morons like NewScum!

  8. So let’s see…not a single one of these people is a registered Republican (one or two of them might have been but were probably forced to switch to at least NPP). One appears to be an illegal alien and yet another appears to be a man pretending to be a woman. Yup…sounds about right for any “committee” being created by the lunatics in charge of California.

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