Just Cause Law Has Reduced Arbitrary Firings as NYC Fast Food Industry Continues to Grow, Comptroller Lander’s Report Finds

 

Despite warnings that the 2021 Local Law would lead to a decrease in fast food jobs and establishments, both have increased since its implementation

In a new report, Open for Business: More Jobs, Restaurants, and Protections under New York City’s Fast Food Just Cause law, New York City Comptroller Brad Lander found that the city’s fast food industry grew in the years following the enactment of the NYC’s Just Cause law for fast food workers (Local Laws 1 and 2 of 2021) as it simultaneously reduced arbitrary firings and strengthened anti-retaliation protections in the industry.

“From Starbucks to Cava, the Fast Food Just Cause Law has protected workers across New York City from being fired unjustly and without recourse,” said New York City Comptroller Brad Lander. “The data in this report also proves that job security and fair wages are also good for business, as the fast food industry has continued to grow since the laws implementation. It is imperative that the City build on this success by passing universal just cause legislation, enacting deactivation protections for app-based workers, and meaningfully supporting union organizing, in order to extend just cause protections to all New Yorkers.”

Since the Law took effect in Q3 2021, NYC’s fast-food industry has grown by 1%, rising from 8,269 to 8,385 establishments by late 2024. This 0.2% average quarterly growth rate exceeds the gains seen in the eighteen months prior to the Law’s implementation and aligns with pre-pandemic trends.

Fast food employment in New York City has also seen significant gains. Between Q3 2021 and Q4 2024, the sector’s workforce grew by 18%, increasing from 64,617 to 76,291 employees. This average quarterly growth of 1.7% outpaces the expansion seen both in the eighteen months prior to the Law’s implementation and during the three years preceding the COVID-19 pandemic.

More importantly, the Just Cause Law has had a positive impact on the working conditions of employees in New York City’s fast food industry. Qualitative evidence from enforcement cases conducted by the Department of Consumer and Worker Protection (DCWP) demonstrates that enforcement of the Just Cause Law has enabled fast food workers to speak out about issues in the workplace, manage emergencies in their personal lives, be protected from discipline when placed in situations outside of their control, and access other protections without retaliation.

Given the positive impact of the Fast Food Just Cause Law, Comptroller Lander’s report urges the City to take action to expand just cause protections across New York City’s labor market, including:

• Pass legislation the Secure Jobs Act (Introduction 0909-2024), a bill introduced by Council Member Tiffany Cabán, to make just cause the universal standard for all employees in New York City.
• Enact legislation that establishes deactivation protections for app-delivery workers and for-hire vehicle workers, (Introduction 1332-2025, sponsored by Council Member Justin Brannan, and Introduction 0276-2024 sponsored by Council Member Shekar Krishnan, respectively), and fully fund its enforcement. 
• Support worker organizing by using a variety of tools – such as procurement, licensing, investments, and information sharing – to empower and inform New Yorkers’ efforts to join a union and collectively bargain.