Gavin Newsom does not want the public to know how he took over the fast food industry in California. Who gave him the suggestion to keep secret the negotiations?
“Sources close to the negotiations said in the summer of 2023, the powerful Service Employees International Union required the other groups at the negotiating table to sign non-disclosure agreements, also known as NDAs. An NDA is a legally binding agreement that forces those involved to keep discussions confidential. SEIU has not responded to repeated requests for comment.
Sources within the fast-food industry told KCRA 3 that when they sought information from the industry’s leaders at the negotiating table in 2023, they were told the information could not be disclosed because of the NDAs.”
Sacramento is like the Soviet Union and Newsom is the slick haired version of Putin—he does not believe in an open and transparent government. Was this so the unions would support him for President?
Non-disclosure agreements were used in negotiations of California’s landmark fast food worker law
SACRAMENTO, Calif. —
We may never know what exactly happened in the final negotiations of California’s controversial fast food minimum wage law because the groups involved signed non-disclosure agreements, multiple sources on all sides of the issue have confirmed to KCRA 3.
That law, which takes effect on April 1, has been at the center of intense scrutiny as Gov. Gavin Newsom faces allegations that he pushed for a special exemption in the law for bakeries to help benefit one of his billionaire donors who is also a Panera franchisee. Newsom has said the claim is absurd, and the franchisee said he never asked for special treatment.
Sources close to the negotiations said in the summer of 2023, the powerful Service Employees International Union required the other groups at the negotiating table to sign non-disclosure agreements, also known as NDAs. An NDA is a legally binding agreement that forces those involved to keep discussions confidential. SEIU has not responded to repeated requests for comment.
Sources within the fast-food industry told KCRA 3 that when they sought information from the industry’s leaders at the negotiating table in 2023, they were told the information could not be disclosed because of the NDAs.
Along with SEIU, sources told KCRA 3 the final negotiators included representatives from McDonald’s, YUM! Brands, the International Franchise Association, and the National Restaurant Association.
Matthew Haller, the president of the IFA, declined to comment. The other groups did not respond to repeated requests for comment over the course of several days.
Newsom’s office, which oversaw the negotiations, said the governor never signed an NDA and did not direct anyone to sign one. KCRA 3 asked Newsom’s office if he was aware an NDA was used during the negotiations of the bill, and if he condones their use in the crafting of public policy. He had not responded as of Wednesday night.
Multiple sources close to the labor side of the negotiations who spoke on the condition of anonymity told KCRA 3 that SEIU uses non-disclosure agreements “routinely” in high-stakes negotiations to build trust with its opponents.
Long-time capitol observer and McGeorge School of Law Professor Chris Micheli said the development is surprising but noted the use of NDAs between interest groups is not illegal.
“It’s unprecedented in my mind because I’ve never heard of anyone using an NDA when it comes to legislative negotiations,” Micheli said. “I think the concern we should have is a potential lack of transparency and disclosure. Remember, the lawmaking process is being done on behalf of the people of California.”
“It would seem we can’t get access to what was discussed or disclosed in those negotiations because it appears the parties signed those NDAs, and if they view themselves as bound by them, then they’re probably not going to disclose to the press or anyone else what was said in those negotiations,” Micheli said.
KCRA 3 has not seen a copy of the NDAs, and the terms of those NDAs were not disclosed. How exactly the NDAs would be enforced is also unclear.
The legislation has been controversial since its inception, pitting labor groups and workers against giant fast-food corporations and their franchisees. When it originally passed in 2022, McDonald’s, Starbucks, and other big chains launched a referendum effort against it. By the fall of 2023, the industry and the powerful labor lobbying group, SEIU came to a truce.
Assemblyman Chris Holden, D-Pasadena, told KCRA 3 last week that despite being the author of the legislation, he was not included in the final negotiations. He has not responded to a request for comment.
The new law not only set the new minimum wage for fast food workers but also created a new council to bargain the wages and working conditions for them until 2029. The council, which comprises a variety of labor and industry representatives, will meet for the first time March 15 in Oakland.
