| Update Applicable to: | Effective date |
| All employers in the restaurant business | Immediately – March 26, 2024 |
What happened?
On March 26, 2024, Governor Newsom signed Assembly Bill (AB) 610, which amends the definition of fast-food restaurants and creates exemptions to the FAST Recovery Act.
What are the details?
AB 1228 establishes a modified version of the Fast Food Council (Council) until January 1, 2029 and sets forth the minimum wage increases for fast food workers, with an increase to $20.00 effective April 1, 2024, previously reported by Vensure here.
Due to the -possible- unforeseen consequences of increasing the minimum wage, like increases in product prices and job losses.
Read more:
California swiftly enacted AB 610. This modifies the FAST Recovery Act (AB 1228).
AB 610 creates a more “restricted definition” of a Fast Food Restaurant and creates 8 exceptions to the law.
Business Considerations
- Check the new amendment to see if (1) you are a covered business and (2) your business fits into one of the added exemptions.
- It is important to note that these are early observations and the long-term impact of the wage increase on employment in the fast-food industry in California may vary
- If exempt, employers who own and operate the above-specified fast food restaurant locations will not need to comply with the abrupt minimum wage hike set to take place on April 1, 2024.
Resources
Source References
- Governor Signs Bill to Exempt Certain Businesses from Fast Food Minimum Wage (Jackson Lewis P.C.)
- California Bill Would Exempt Certain Fast Food Restaurants From $20-per-Hour Minimum Wage (Ogletree Deakins)
- Governor Signs Urgency Legislation Exempting Certain Restaurants from New Fast Food Minimum Wage (Atkinson Andelson Loya Ruud & Romo)
- California’s New Minimum Wage Law Will Bring Higher Pay To Fast-Food Workers, Along With Unintended Job Losses (Forbes)
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