Increased minimum wage for certain fast-food workers…who should pay attention?

Governor Newsom recently signed AB 1228 increasing the minimum wage for fast food workers to $20.00 per hour beginning April 1, 2024. The Fast-Food Council, part of the Department of Industrial Relations (DIR), is responsible for creating a process to develop employment standards related to wages, working conditions, and training. It allows the Fast-Food Council to increase the fast-food workers minimum wage annually through 2029.

What does this mean for you? First, the new minimum wage only applies to establishments with at least 60 locations nationwide. Businesses who make and sell their own bread (think Panera) are excluded. However, if you compete for these workers, you should evaluate your starting pay. There is a risk workers will leave to a competitor for higher wages. It is also a good time to evaluate other workplace perks to help improve overall employee retention. 

Compliance shout out: Posting the minimum wage notice is just one of the many required employer postings in California. Visit the DIR website for the full list.