Assembly Bill 1228 Raises Minimum Wage to $20 per Hour
Starting on Monday, April 1, a big change will occur in California’s fast food industry as Assembly Bill 1228 comes into effect. It mandates a minimum wage of $20 per hour for workers in this sector, as reported by KTLA 5 News.
This legislation has sparked intense debate. Proponents hail it as a victory for low-income workers, while critics argue it will burden businesses, particularly the restaurant industry. Major chains such as McDonald’s and Chipotle are expected to implement menu price increases in response to the wage hike.
The fast food sector is a significant employer in California, with over 500,000 workers. However, questions remain about which employees will qualify for the raise. To address these concerns, the California Department of Industrial Relations has launched a Frequently Asked Questions website dedicated to AB 1228.
Key points include clarifications on the definition of a “fast food restaurant” and the scope of coverage under the new law. According to the state’s guidelines, a fast food establishment is characterized by limited service, where customers order and pay before consumption, distinguishing it from sit-down dining experiences. Furthermore, the law applies specifically to chain restaurants with at least 60 locations nationwide.
The state’s guidance also specifies that establishments primarily engaged in administrative, warehouse, or food preparation tasks are exempt from the 60-establishment threshold. However, if a restaurant derives more than half of its revenue from immediate consumption food or beverage sales, its employees must be compensated at the new minimum wage rate starting Monday.
