| THE BUZZ — Organized labor is pushing California lawmakers to enact first-in-the-nation standards for fast-food workers that could have major implications for global corporations. But what started with one bill last year has turned into a grueling multi-year fight. We saw another round in that fight Tuesday, when Senate Judiciary Chair Tom Umberg announced that Assemblymember Chris Holden’s closely watched bill on fast-food franchise liability was pulled from that day’s agenda at the behest of proponents, which include SEIU California. The bill is not dead — Umberg said he plans to reintroduce it at a hearing in August or September. But in the meantime, he said, “both sides of the issue must get to the table, stop posturing and negotiate a global agreement.” David Huerta, president of SEIU California, said in a statement that the bill will get a vote when the Legislature returns from summer recess. “We are confident that the Legislature and the administration are fully committed to bringing greater accountability to this industry,” he said. It’s not clear exactly what prompted the delay, but it’s not uncommon to pull bills when the authors or proponents know they don’t have the votes. In this instance, there were rumblings of misgivings among Democrats on the committee who feared the measure might go too far in requiring corporations like McDonald’s to be legally liable for labor violations in their many franchises. Holden didn’t elaborate on negotiations. Nor did Umberg. The snag highlights the ongoing feud between labor and the restaurant industry in California. Tuesday’s conflict traces back to last year’s FAST Act, another bill by Holden to establish a fast-food council that would propose standards around wages and working conditions for employees. That bill managed to pass the Legislature in spite of heavy opposition from a coalition of restaurants and businesses — but not without getting a haircut. A similar joint liability provision was stripped out of the FAST Act in the Senate Judiciary Committee last year. That move was seen by many as a concession to appease the business interests lobbying against it. But shortly after Gov. Gavin Newsom signed the bill, the coalition of restaurants went to work qualifying a referendum. Now, that liability provision is back on the table and seen largely as labor’s response to restaurants trying to undo the FAST Act. It passed through the Assembly, but now seems to be getting a lukewarm reception among moderate Democrats in the Senate, who must weigh the risks of opposing powerful labor groups. Corporations are digging deep to stop California from placing more regulations on fast-food establishments, with the fear that other states could adopt similar measures. Opponents spent $10 million qualifying the referendum against last year’s bill, and McDonald’s earlier this year dropped $1 million into a state independent expenditure committee to protect its interests. On Tuesday, Umberg warned that companies are not off the hook — there is still an appetite to hold them liable for repeat labor violations at their franchises. “They would be well served to negotiate in good faith,” Umberg said. HAPPY WEDNESDAY. Thanks for waking up with Playbook. Now let’s talk happy hour — POLITICO California is holding another meet-and-greet tonight in downtown Sacramento. Help us give a warm welcome to Dustin and catch up with the whole POLITICO team as we build out our Golden State expansion. Cocktails and conversation start flowing at 6 p.m. Details here. PLAYBOOK TIP LINE — What bills are you losing sleep over ahead of Friday’s policy committee deadline? Heard of any juicy amendments? Get in touch! We want all your hot tips, photos and story ideas. Now you can text us at 916-562-0685 — save it as “CA Playbook” in your contacts now. Or drop us a line at lkorte@politico.com and dgardiner@politico.com, or on Twitter — @DustinGardiner and @Lara_Korte WHERE’S GAVIN? Nothing official announced.
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