New Minimum Wage for Fast Food Workers in California

California Governor Gavin Newsom signed into law AB 1228, which requires that fast-food workers who work at a national fast food chain (defined as a limited-service restaurant consisting of more than 60 establishments nationally) be paid a minimum of $20 per hour, effective April 1, 2024. The bill also creates a new Fast Food Council that will determine minimum standards on wages, working hours, and other working conditions. The Fast Food Council will institute minimum wages for these employees on an annual basis. Establishments that operate a bakery that produces and sells bread are not covered by the law. Also, grocery establishments that have a restaurant on their premises and directly employ the employees who work at the restaurant are not covered by the law.