Late last year, Governor Gavin Newsom signed into law AB 1228 which increases the state minimum wage for fast-food employees in California to $20.00 per hour beginning on April 1, 2024. In addition, the law created a “Fast Food Council” within the Department of Industrial Relations (DIR). The Council was granted authority to impose binding minimum standards on wages, working hours, and other conditions related to the health, safety, and welfare of fast food restaurant workers. AB 1228 further entrusts the enactment and enforcement of these standards to relevant state agencies, such as the Labor Commissioner, Cal/OSHA, or the California Civil Rights Department.
The new law applies only to employees in “National Fast Food Chains” which is defined as “limited-service restaurants consisting of more than 60 establishments nationally that share a common brand, or that are characterized by standardized options for decor, marketing, packaging, products, and services, and which are primarily engaged in providing food and beverages for immediate consumption on or off premises where patrons generally order or select items and pay before consuming, with limited or no table service.” Bakeries would be exempt, as would restaurants located in a grocery store.
This new wage increase is significant because it is considered to be the first minimum wage established for a specific economic sector in California.
