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

New York, NY – 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. 

“Every job should be a secure job,” said Council Member Tiffany Cabán. “And the data is clearer than ever: secure jobs are good for the economy and good for workers. New York City must follow the positive example of the Fast Food Just Cause law and pass the Secure Jobs Act to make just cause the universal standard across all employment in New York City.”

“As Comptroller, Brad Lander has always had New York City workers’ backs as we fight for our collective future,” said Kai Fritz, a union Starbucks barista from South Brooklyn. “Union Starbucks baristas across New York City have seen the kind of power that workers have when we fight together. Laws like Fast Food Just Cause prove that when leaders put workers first, we all win. We as Starbucks baristas know how much we stand to win with these laws, like no longer suffering unjust firings while we’re fighting to unionize.”

“Every worker deserves just cause protections. That’s why our Uber and Lyft members fought for and won just cause for Uber and Lyft drivers following the model created by the historic just cause law for fast food workers. No one should have to go to work not knowing if they’ll have a job at the end of the day or if they’ll be unfairly fired with no recourse. Strengthening workers’ rights benefits all New Yorkers. We applaud the work of Comptroller Lander and the DCWP in upholding these important worker protections,” said Bhairavi Desai, Executive Director of 28,000-member New York Taxi Workers Alliance.

“This report puts to rest one of the biggest myths used to block worker protections: that basic fairness costs jobs. New York’s fast food just cause law didn’t shrink the industry — it grew it. Jobs increased, establishments expanded, and workers finally had a measure of stability and dignity at work. The evidence is clear: when workers have rights, the economy doesn’t suffer — it functions better,” said Ligia Guallpa, Executive Director of Worker’s Justice Project and Co-Founder of its Los Deliveristas Unidos campaign. “Put simply: just cause works, and it works across industries. That’s why we’re calling on the City to fully enforce, resource and extend just cause protections to app-based workers in for-hire driving and delivery. We are so grateful to Comptroller Lander for always fighting on the side of workers and proving, yet again, that worker protections strengthen our economy.”

“Comptroller Lander’s timely study shows that New York’s path-breaking just cause law for fast food workers has protected workers against unfair firings without hurting business or job growth,” said Paul Sonn, state policy program director at the National Employment Law Project. “With a slowing economy and deployment of AI making jobs more precarious, it shows why all New Yorkers need just cause protections.”

Read Open for Business: More Jobs, Restaurants, and Protections under New York City’s Fast Food Just Cause Law here: https://comptroller.nyc.gov/reports/open-for-business-more-jobs-restaurants-and-protections-under-new-york-citys-fast-food-just-cause-law/

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