California will raise the minimum wage for fast food workers to $20/ hour on April 1, 2024. Governor Newsom signed AB1228 into law on September 28, 2023, which led to this modification. The Fast Food Council’s jurisdiction to raise the minimum pay in the future and establish additional criteria for California fast food establishments is clarified by AB1228, which also raises the minimum wage for workers in the industry.
In California, some workers in the fast food industry were subject to a new minimum wage of $20 per hour. To better the financial circumstances of thousands of workers in one of the most vital and dynamic businesses, AB 1228 is driving this bill, which marks a turning point in the state’s labor laws. Read more.
Fast Food Minimum Wage
The labor agreement between fast food corporations and the SEIU on September 11, 2023, is reflected in this new law, which comes after years of negotiations and lobbying by workers, unions, and fast food firms. Also, the new law ends the November 2024 ballot measure by fast food firms to repeal Governor Newsom’s proposed minimum wage of $22 per hour for fast food workers. Both the fast food business and other service sectors that draw from the same candidate pool will be significantly impacted by AB 1228. Even California’s most generous county and city minimum salaries are now less than the minimum wage for fast food.
Any employee of a “fast food restaurant” that is a member of a “national fast food chain” in California is subject to the new law. Function as a “limited deal restaurant,” which provides little to no table service and where patrons place orders for food and drinks and pay for them earlier they are spent. For example, a restaurant with the NAICS code 722513 is considered a “limited service restaurant.” Participate in a countrywide fast-food business franchise that has at least 60 locations around the country. Companies must have a “common brand” or be “branded by consistent choices for decor, advertising, packaging, foods, and services.”
$20 for Fast Food Employees in California – Overview
| Article name | Who is qualified to get the $20 minimum wage in California? |
| state | California |
| Department | Department of industrial relations/fast food council |
| Recipients | Eligible employees |
| Benefit Amount | $20/ hour |
| Year | 2025 |
| Category | Financial Aid |
| Official Portal | dir.ca.gov |
What is the Fast Food Franchisor Responsibility Act?
The California legislature is now considering a proposed bill recognized as the Fast Food Franchisor Responsibility Act, or AB 1228. This regulation, which at first glance seems to favor franchisees, mandates that franchisors abide by employment standards and that they share responsibility for any violations with their franchisees. On closer examination, the Act’s ramifications become more nuanced.
The main objective of the Fast Food Franchisor Responsibility Act is to hold fast food franchisors jointly liable and civilly responsible for franchisee infractions. This implies that an employee or former employee may sue the franchisor for violating several employment laws in addition to the franchisee. A franchisee’s agreement to indemnify the franchisor for liabilities would be against public policy, according to the bill, and would be null and void.
AB 1228 is presently being examined by the state Senate after being approved by the California Assembly on May 31, 2023. If the Act is implemented, it will probably force franchisors to be more involved in the daily operations of fast food businesses, which will help franchises make fewer decisions. The FAST Recovery Act will now be up for voting as a proposition on the 2024 ballot, putting the last say in this issue in the democratic process.
Who will get $20 Minimum Wage in California?
The $20 minimum wage eligibility criteria apply on fast food workers who will be able to fulfill it. below I have mentioned the criteria, fulfil it.
- The organisation should operate a minimum of 60 establishments nationwide.
- It should offer a standardised menu and mutual branding.
- Your company location should be established in California.
- This contains kitchen staff as well as cashiers, cleaning team & other active roles in the restaurant.
- The service must be mainly takeaway or rapid consumption food.
Who is excluded from getting $20 Per Hour in California?
Not every fast food worker is eligible for this minimum wage. AB 610, passed later, introduced some key requirements and exemptions, which I have discussed below. If you fulfil it, you’ll be able to receive the $20 minimum wage in California.
- Restaurant, exclusive supermarkets or large retail stores.
- Family-owned businesses where the owner is complex in the day-to-day process and has common control.
- Traditional bakeries that sell baked goods straight to the customer.
- Establishment operating in hospitals o universities, and airports.
What Employers should know about AB1228?
Company owners in the fast food sector should fulfil the criteria set by the Department of Industrial Relations/Fast Food Council:
- Confirm that you pay a minimum $20 per hour to qualified workers.
- Update your payroll systems and info posters.
- Comply with the extra guidelines obligatory by the fast food council, a body set up to oversee employed conditions in the sector.
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