The governor said Monday that he had signed a bill that would set a minimum wage in the industry and create new safety and anti- discrimination rules.
The bill was approved by the State Legislature last week, despite resistance from fast-food companies.
The minimum will be adjusted for inflation after the council raises the industry minimum to $22 an hour. New labor standards may be issued by the council.
Mr. Newsom said that the action gave fast-food workers a stronger voice and seat at the table to set fair wages and health and safety standards.
The bill would raise costs that restaurants would pass on to consumers at a time of rapid price increases. State regulators have the authority to improve health and safety at fast food restaurants.
Matthew Haller, the president of the International Franchise Association, said that the bill was a fork in the road for franchise owners and customers.
Labor groups argued that the bill was needed to improve the conditions of vulnerable workers. Traditional enforcement depends on workers coming forward with claims against their employers, something fast-food workers are often reluctant to do.
David Weil, who oversaw the agency that enforces the federal minimum wage under President Barack Obama, said that there are a lot of workers who are less likely to complain.
Mr. Weil was concerned that the bill could draw resources from other industries where workers are vulnerable.
The bill is a major step towards so-called sectoral bargaining, in which workers and management negotiate wages and conditions across an entire industry as opposed to at individual companies, often location by location.
The Service Employees International Union, which has nearly two million members and is a major backer of the bill, argued that a sectoral approach was needed because workers find it inefficient and often futile to try to improve conditions by unionizing at individual restaurants.
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