Effective April 1, 2024, fast food restaurant workers in California working at a “national fast-food chain” establishment must be paid a minimum of $20 per hour. The change is a result of legislation (Assembly Bill 1228) that was enacted in 2023.
The details
Assembly Bill 1228 defines “national fast-food chain” as follows:
A set of 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. For purposes of the definitions in this part, “limited-service restaurant” includes, but is not limited to, an establishment with the North American Industry Classification System Code 722513.
The fast-food worker minimum wage will be adjusted for inflation beginning on Jan. 1, 2025.
Exemptions
The following entities are exempt from the requirement:
- Establishments operating a bakery that produces bread for sale as a stand-alone item on the establishment’s premises; and
- Restaurants located in a grocery establishment where the grocery employs the restaurant workers.
Note: The state legislature is considering legislation (Assembly Bill 610) that would expand the list of exempt entities.
Next steps
Beginning April 1, 2024, “national fast-food chain” employers in California must pay their employees a minimum wage of at least $20 per hour.