Requirements & FAQs
Starting April 1, 2024, all ‘fast-food restaurant employees’ covered by the new law must be paid at least $20.00 per hour. This marks a huge win for workers in the fast-food industry and aims to destigmatize service jobs.
“Fast Food Restaurant Employees” must meet 3 key requirements to qualify for $20 fast food pay in California.
1. Limited-Service Restaurant
Must be a “limited-service restaurant”; with limited or no table service where customers pay before the items are consumed.
2. At Least 60 Establishments
Must be a chain of at least 60 establishments nationwide. Administrative, warehouse, or prep food production locations are not counted as “establishments”.
3. Immediate Consumption
Primarily engaged in selling food and beverages for immediate consumption. Grocery stores, some restaurants operating under other establishments, restaurants primarily for campuses or companies, or those operating on public land are excluded from the fast food pay.
FAQ
Can ice cream, coffee, boba tea, pretzel, or donut shops be considered a fast food restaurant covered by the new law?
Yes, the definition of “fast food restaurant” does not depend on what type of food or beverage an establishment sells.
If a worker also gets paid tips, can an employer use the tips as a credit toward the obligation to pay the minimum wage?
No, an employer may not use an employee’s tips as a credit toward its obligation to pay the minimum wage per hour.
Can an employer increase the amount of meal or lodging credits that count toward the minimum wage under the Industrial Welfare Commission Orders?
No, AB 1228 did not authorize additional credits to the minimum wage. A fast food employer may only credit the amounts allowed by the statewide minimum wage.
