California's New Minimum Wage Law for Fast Food Employees: 2024
Key Takeaways
| Section | Key Takeaways |
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| Introduction |
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| Effective Date and New Minimum Wage |
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| Applicability |
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| Exemptions |
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| Employer Responsibilities |
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| Impact on Employees |
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| Role of the Fast Food Council |
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| Frequently Asked Questions |
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‘Pro-Tip’
Streamline Payroll Adjustments: Leverage TimeTrex’s payroll system to seamlessly implement wage increases mandated by AB 1228, reducing administrative workload and ensuring accurate pay.
Table of Contents
- Key Takeaways
- Introduction
- Brief Overview of AB 1228
- Importance of the New Law for Fast Food Employees in California
- Effective Date and New Minimum Wage
- Start Date: April 1, 2024
- New Minimum Wage Rate: $20.00 per Hour
- Applicability
- Definition of “Fast Food Restaurant Employees”
- Limited-Service Restaurants
- Part of a Chain with at Least 60 Establishments Nationwide
- Primarily Engaged in Selling Food and Beverages for Immediate Consumption
- Exemptions
- Bakery Exemption
- Criteria for Bread Production and Sale
- Grocery Establishment Exemption
- Criteria for Restaurants within Grocery Stores
- Other Location-Based Exemptions
- Airports, Hotels, Event Centers, Theme Parks, Museums, Gambling Establishments
- Concession Agreements and Food Service Contracts Exemptions
- Bakery Exemption
- Employer Responsibilities
- Posting Requirements for New Minimum Wage
- No Increase in Meal or Lodging Credits
- Prohibition on Using Tips to Meet Minimum Wage Obligations
- Impact on Employees
- Managerial Positions and Salary Requirements
- Blended Rate Calculation for Managers Overseeing Multiple Departments
- Legal Recourse for Employees Not Receiving the New Minimum Wage
- Role of the Fast Food Council
- Composition and Responsibilities
- Future Wage Adjustments and Employment Standards
- Public Involvement and Meeting Transparency
- Frequently Asked Questions
- What is AB 1228?
- When Does the New Minimum Wage Take Effect?
- Who Qualifies as a “Fast Food Restaurant Employee” Under the New Law?
- Are There Any Exemptions to the New Minimum Wage Law?
- What Are the Posting Requirements for Employers?
- Can Meal or Lodging Credits Be Increased to Meet the New Minimum Wage?
- Can Employers Use Tips to Meet the Minimum Wage Obligation?
- How Does the New Law Affect Managerial Positions?
- How Is the Blended Rate Calculated for Managers Overseeing Multiple Departments?
- What Should Employees Do If They Are Not Receiving the New Minimum Wage?
- What Is the Fast Food Council?
- What Are the Future Wage Adjustments and Employment Standards?
- How Can the Public Get Involved with the Fast Food Council?
- Where Can More Information Be Found?
‘Pro-Tip’
Engage in Teamwork: Work closely with your colleagues to improve efficiency and create a positive work environment, which can lead to better customer service and higher overall sales.
Overview of AB 1228
AB 1228, officially known as the Fast Food Accountability and Standards Recovery Act, is a significant piece of legislation signed into law by the Governor of California. Enacted in response to growing concerns about fair wages and working conditions in the fast food industry, this law introduces a mandatory minimum wage specifically for fast food restaurant employees, set at $20.00 per hour effective April 1, 2024.
The bill adds sections 1474, 1475, and 1476 to the California Labor Code and establishes a Fast Food Council. This council, comprising representatives from the fast food industry, franchise owners, employees, and advocates, is empowered to set and adjust minimum employment standards and wages for the sector. These standards aim to ensure the health, safety, and welfare of fast food workers and to provide them with a livable wage.
Importance of the New Law for Fast Food Employees in California
The implementation of AB 1228 marks a transformative change for fast food employees across California, addressing longstanding issues of wage disparities and improving overall employment conditions. Here’s why this law is crucial:
Economic Stability:
- The new minimum wage of $20.00 per hour significantly raises the income of fast food workers, who have historically earned near or at the general minimum wage. This increase helps bridge the gap between low-wage employment and the rising cost of living in California, offering a more sustainable livelihood for employees and their families.
Improved Working Conditions:
- By establishing the Fast Food Council, AB 1228 ensures that future adjustments to wages and working conditions are continuously addressed. The council’s role includes evaluating and implementing new standards that directly impact the day-to-day working environment, thus fostering a safer and more equitable workplace.
Empowerment and Representation:
- The inclusion of employee representatives and advocates on the Fast Food Council gives workers a voice in decisions that affect their employment. This representation promotes a more democratic and fair approach to labor relations within the fast food industry.
Legal Protections:
- AB 1228 strengthens legal protections for fast food workers. Employees now have clearer avenues for recourse if they are not paid the mandated minimum wage, including filing claims with the Labor Commissioner’s Office. This legal backing ensures that workers can assert their rights without fear of retaliation.
Setting a Precedent:
- The law sets a precedent for other states to follow, highlighting California’s commitment to progressive labor laws. By prioritizing the welfare of fast food employees, California positions itself as a leader in labor rights, potentially influencing similar legislative actions nationwide.
Chart: California Income and Minimum Wage Over Time
Data Retrieved From: https://fred.stlouisfed.org
https://fred.stlouisfed.org
‘Pro-Tip’
Maintain Cleanliness Standards: Adhere to strict cleanliness standards in the restaurant to ensure a safe and pleasant environment for customers, leading to repeat business and higher earnings.
Effective Date and New Minimum Wage
The implementation of the new minimum wage law under AB 1228 is set to commence on April 1, 2024. This date marks a significant shift in the compensation framework for fast food employees in California, ensuring that all eligible workers receive a higher standard of pay from this day forward.
New Minimum Wage Rate: $20.00 per Hour
As mandated by AB 1228, the new minimum wage for fast food employees will be set at $20.00 per hour. This rate applies uniformly across the state to all qualifying fast food establishments and represents a substantial increase from the previous minimum wage levels.
The increase in the minimum wage is designed to address several key issues:
Combating Inflation and Cost of Living:
- The $20.00 per hour rate is a response to the increasing cost of living in California, where expenses such as housing, food, and transportation have been on the rise. This wage adjustment aims to provide fast food workers with a more livable income that better aligns with the financial demands of residing in the state.
Reducing Wage Disparities:
- By setting a higher wage specifically for fast food employees, the law seeks to mitigate wage disparities within the industry and ensure that workers receive fair compensation for their labor. This move is particularly impactful for fast food employees, who often face challenging working conditions and limited opportunities for wage growth.
Enhancing Employee Retention and Satisfaction:
- A higher wage rate is expected to improve job satisfaction and employee retention within the fast food sector. Better pay can lead to a more motivated and stable workforce, which benefits both employees and employers through improved performance and reduced turnover rates.
Setting a Benchmark for Other Industries:
- The new wage rate sets a benchmark that could influence wage standards in other low-wage industries. As fast food establishments adjust to the new minimum wage, there may be a ripple effect prompting other sectors to reevaluate and potentially increase their own wage offerings to remain competitive in attracting and retaining workers.
Employer Responsibilities and Compliance
All employers operating fast food establishments in California are required to comply with the new minimum wage law. This includes:
Posting Requirements:
- Employers must display the updated minimum wage information prominently in the workplace. This ensures that all employees are informed of their rights under the new law.
Wage Adjustments:
- Employers must adjust their payroll systems to reflect the new minimum wage rate, ensuring that all eligible employees are compensated at the new rate starting from April 1, 2024.
Record Keeping:
- Employers are required to maintain accurate records of wages paid to ensure compliance and to provide documentation in the event of an audit or employee wage claim.
Failure to comply with these requirements can result in penalties and legal action. Therefore, it is crucial for employers to understand and adhere to the provisions of AB 1228 to ensure a smooth transition to the new wage standards.
‘Pro-Tip’
Stay Informed About Wage Laws: Keep yourself updated on wage laws and employee rights to ensure you receive fair compensation and can address any discrepancies with your employer.
Applicability
Definition of "Fast Food Restaurant Employees"
AB 1228 defines “fast food restaurant employees” with specific criteria to ensure clarity on who is covered by the new minimum wage law. The definition encompasses a wide range of establishments and aims to include most traditional fast food environments where quick service and immediate consumption of food are primary features.
Limited-Service Restaurants
To qualify as a fast food restaurant under AB 1228, an establishment must be a limited-service restaurant. This type of restaurant is characterized by:
Order and Payment Process:
- Customers order food or beverages and pay for them before consuming the items. This can occur at a counter, through a drive-thru, or via online/app-based ordering systems.
Service Model:
- These establishments typically offer limited or no table service. Food is either taken to go, consumed on-site at self-service tables, or delivered to the customer’s location.
Quick Service Focus:
- The primary focus of limited-service restaurants is on quick service, emphasizing speed and convenience for customers.
Part of a Chain with at Least 60 Establishments Nationwide
AB 1228 specifically targets larger chains to ensure broad application across the fast food industry. For an establishment to fall under the purview of the new law, it must be part of a chain that meets the following criteria:
Chain Definition:
- The establishment must be one of at least 60 restaurant locations nationwide. These locations can be under a single brand or corporate entity, and they must offer standardized marketing, products, or services.
Geographical Spread:
- The 60 establishments do not need to be within California alone; they can be spread across the United States, provided they are part of the same restaurant chain.
Exclusions:
- Off-site business locations, such as administrative offices, warehouses, or preparatory food production facilities that are separate from the restaurant locations, are not counted towards the 60-establishment minimum.
Primarily Engaged in Selling Food and Beverages for Immediate Consumption
The law focuses on establishments primarily engaged in selling food and beverages intended for immediate consumption. This criterion ensures that traditional fast food restaurants are included while excluding establishments where immediate consumption is not the primary focus. The key aspects are:
Revenue Generation:
- The restaurant must earn more than 50% of its gross revenue from selling food or beverage items that are for immediate consumption. This includes food items eaten at the restaurant, in the car, or soon after purchase at another location.
Types of Food and Beverages:
- The definition is broad and includes a variety of food and beverage types, such as burgers, pizza, sandwiches, coffee, ice cream, boba tea, pretzels, cookies, donuts, and other similar items.
Immediate Consumption Definition:
- “Immediate consumption” means that customers typically eat the food at the restaurant, in their car, or shortly after purchasing. Items sold for home preparation or future consumption, such as pre-packaged meals or bulk food items, do not fall under this category.
Examples and Clarifications:
- For instance, a pizza chain earning the majority of its revenue from ready-to-eat pizzas qualifies, while a store primarily selling “take and bake” pizzas does not.
- Similarly, a chocolate shop selling mostly boxed chocolates for later consumption would be excluded, but one selling ready-to-eat treats would be included if it meets the revenue criteria.
‘Pro-Tip’
Utilize Employer Benefits: Take full advantage of benefits offered by your employer, such as health insurance, meal discounts, and retirement plans, to enhance your overall compensation package.
Exemptions
AB 1228 outlines specific exemptions to the new minimum wage law to account for the diversity within the food service industry. These exemptions ensure that certain types of establishments, which may have different business models or operational structures, are not unfairly burdened by the law. Here are the detailed exemptions:
Bakery Exemption
Certain bakery operations are exempt from the new minimum wage law under AB 1228. The bakery exemption applies to restaurants that meet the following criteria for bread production and sale:
- Criteria for Bread Production and Sale:
- Bread Definition:
- To qualify for the exemption, the restaurant must produce and sell “bread” as a stand-alone menu item. “Bread” is defined as a single unit item that weighs at least ½ pound after cooling and must be sold individually, not as part of a sandwich or other prepared food item.
- Production on Premises:
- The bread must be produced on the premises of the restaurant location where it is sold. This includes making the dough (typically from flour, water, and yeast) and baking it on-site. Simply baking pre-made dough that was prepared elsewhere does not qualify.
- Continued Production:
- The restaurant must have been producing and selling bread as a stand-alone menu item as of September 15, 2023, and must continue to do so. This ensures that the exemption applies only to established bakery operations and not new or temporary changes to the menu.
- Bread Definition:
Restaurants that sell bread only as part of sandwiches or other food items, or that produce bread off-site, do not qualify for this exemption. Additionally, smaller baked goods such as muffins, croissants, or buns that weigh less than ½ pound after cooling are not included.
Grocery Establishment Exemption
Restaurants operating within grocery establishments can also be exempt from the new minimum wage law. This exemption is based on the following criteria:
- Criteria for Restaurants within Grocery Stores:
- Location and Operation:
- The restaurant must be located and operate within a grocery establishment. A grocery establishment is defined as a retail store in the state that is over 15,000 square feet in size.
- Primary Purpose:
- The primary purpose of the grocery establishment must be the sale of household foodstuffs for offsite consumption. This includes items such as fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked goods, and prepared foods.
- Gross Income:
- The grocery establishment must earn more than 50% of its gross income from the sale of household foodstuffs for offsite consumption. Any sale of other household supplies or products must be secondary to the primary purpose of food sales.
- Employment:
- The grocery establishment employer must employ the individuals working in the restaurant. This ensures that the exemption applies to employees who are part of the grocery establishment’s overall workforce.
- Location and Operation:
Other Location-Based Exemptions
AB 1228 also provides exemptions for restaurants connected to or operating in conjunction with specific types of locations. These exemptions apply to:
Airports:
- Restaurants operating within airports are exempt from the new minimum wage law due to the unique operational environment and regulatory considerations of airport concessions.
Hotels:
- Restaurants located within hotels are exempt. These establishments often have different business models and serve hotel guests primarily, differentiating them from typical fast food restaurants.
Event Centers:
- Restaurants in event centers that are over 20,000 square feet or have more than 1,000 seats (e.g., sports stadiums, concert halls, racetracks) are exempt. The large-scale and event-driven nature of these venues places them outside the scope of typical fast food operations.
Theme Parks:
- Theme parks are also exempt due to their specific operational requirements and the integrated nature of food service within the overall park experience.
Museums:
- Restaurants within museums are exempt, reflecting the unique service model and visitor experience at these cultural institutions.
Gambling Establishments:
- Gambling establishments, such as card rooms, are exempt due to the specialized environment and regulatory considerations of these venues.
Concession Agreements and Food Service Contracts Exemptions
Certain restaurants operating under specific agreements or contracts are exempt from the new minimum wage law. These include:
Concession Agreements in Private Companies:
- Restaurants in buildings or campuses primarily used by one for-profit company, where the restaurant primarily serves the employees of that company, are exempt. This reflects the unique employer-employee relationship within such corporate environments.
Public Land Contracts:
- Restaurants operating on public land, such as public beaches, parks, historic districts, or areas managed by port authorities, are exempt. These establishments often function under specific public service mandates and operational constraints.
‘Pro-Tip’
Efficient Time Management: Use slow periods to prepare for rush hours by pre-prepping ingredients and organizing your workspace. This efficiency boosts performance during busy times.
Employer Responsibilities
AB 1228 places several responsibilities on employers to ensure compliance with the new minimum wage law and to protect the rights of fast food employees. Here are the detailed requirements that employers must adhere to:
Posting Requirements for New Minimum Wage
Employers must prominently display information about the new minimum wage in the workplace. This ensures that all employees are aware of their rights and the new wage standards. The specific requirements include:
Visibility:
- The minimum wage notice must be posted in a conspicuous place where it can be easily seen by all employees. This is typically in common areas such as break rooms, near time clocks, or employee bulletin boards.
Content:
- The notice must include the new minimum wage rate of $20.00 per hour, the effective date (April 1, 2024), and any additional relevant information outlined in the wage order supplement. Employers can download the official notice from the Department of Industrial Relations website or obtain it from local Division of Labor Standards Enforcement (DLSE) offices.
Language:
- The notice should be provided in both English and any other languages commonly spoken by the employees to ensure comprehensive understanding.
No Increase in Meal or Lodging Credits
AB 1228 specifies that employers cannot increase the amount of meal or lodging credits that count toward the minimum wage. Meal and lodging credits refer to the value of meals and/or housing provided by the employer that can be counted as part of the employee’s wages. The specific rules are:
Fixed Credits:
- Employers must adhere to the existing amounts allowed by the statewide minimum wage regulations for meal and lodging credits. AB 1228 does not authorize any additional credits beyond what is already permitted.
Compliance:
- Employers must ensure that the total wage paid, including any allowable meal or lodging credits, meets or exceeds the new minimum wage of $20.00 per hour. If the credits currently used are insufficient to meet the new minimum wage, employers must adjust the cash wage component accordingly.
Prohibition on Using Tips to Meet Minimum Wage Obligations
AB 1228 clearly prohibits employers from using tips to fulfill their obligation to pay the minimum wage. Tips are considered separate from wages and cannot be used to offset the employer’s responsibility to pay the mandated hourly rate. The specific requirements include:
Separate Compensation:
- Tips received by employees must be kept separate from the hourly wage. Employees must be paid the full minimum wage of $20.00 per hour in addition to any tips they receive.
No Tip Credits:
- Unlike some other jurisdictions that allow a tip credit (where employers can count a portion of tips towards the minimum wage), California law, including AB 1228, prohibits this practice. Employers cannot reduce the hourly wage based on the amount of tips an employee earns.
Full Wage Payment:
- Employers must ensure that all employees receive their full hourly wage of $20.00 per hour, regardless of the tips they collect. Tips are an additional income source for employees and should not impact the employer’s wage obligations.
Compliance and Enforcement
To ensure compliance with these responsibilities, employers should take the following actions:
Regular Audits:
- Conduct regular internal audits of payroll records to ensure all employees are paid according to the new minimum wage law. This includes verifying that meal and lodging credits are appropriately calculated and that tips are not used to offset wages.
Training:
- Provide training for management and payroll staff on the requirements of AB 1228, including the proper posting of notices, adherence to meal and lodging credit rules, and the prohibition on using tips as wage credits.
Documentation:
- Maintain accurate and detailed records of wages paid, including any meal or lodging credits provided and tips received by employees. These records are crucial for demonstrating compliance in the event of an audit or employee wage claim.
Employee Communication:
- Ensure that all employees are informed about their rights under AB 1228, including the new minimum wage, how meal and lodging credits are applied, and the treatment of tips. This can be done through employee handbooks, training sessions, and regular communications.
Failure to comply with these requirements can result in penalties, fines, and legal action. Employers must take proactive steps to ensure they are fully compliant with AB 1228 to avoid any legal or financial repercussions.
‘Pro-Tip’
Optimize Order Accuracy: Double-check orders before delivering to avoid mistakes. Accurate orders lead to higher customer satisfaction and better tips.
Impact on Employees
AB 1228 has significant implications for fast food employees, particularly in terms of wage increases, managerial positions, and legal protections. This section explores these impacts in detail.
Managerial Positions and Salary Requirements
Under AB 1228, specific criteria must be met for managerial positions to be classified as exempt employees, meaning they are not eligible for overtime pay. The key requirements are:
Minimum Salary:
- Managers must receive a salary that is at least twice the state minimum wage for a full-time, 40-hour workweek. Starting April 1, 2024, the minimum salary threshold for exempt status in fast food restaurants will be $83,200 per year ($1,600 per week).
Duties Test:
- In addition to meeting the salary requirement, managers must perform duties that are considered exempt under California labor laws. These duties typically include managing the enterprise, directing the work of other employees, and exercising significant discretion and independent judgment.
Time Spent on Exempt Duties:
- Managers must spend more than 50% of their work time engaged in exempt duties. If a manager’s role involves a mix of exempt and non-exempt tasks, careful record-keeping is required to ensure compliance.
Blended Rate Calculation for Managers Overseeing Multiple Departments
In cases where managers oversee both fast food restaurant operations and other departments within a larger establishment, employers must calculate a blended rate to determine the appropriate salary. The blended rate reflects the proportion of time spent managing each type of operation. Here’s how it works:
Determine Time Allocation:
- Assess the percentage of time the manager spends on fast food restaurant duties versus other non-fast food duties. For example, if a manager spends 40% of their time on fast food operations and 60% on other operations, this ratio will be used in the calculation.
Calculate Blended Salary:
- Use the respective minimum wage rates to calculate the blended salary based on the time allocation.
Example Calculation:
Fast Food Restaurant Operations:
- Minimum wage: $20.00/hour
- Required salary: $20/hour x 2 x 40 hours = $1,600/week
- Time allocation: 40%
- Pro-rated salary: $1,600 x 40% = $640
Other Operations:
- General state minimum wage (assuming $16.00/hour)
- Required salary: $16/hour x 2 x 40 hours = $1,280/week
- Time allocation: 60%
- Pro-rated salary: $1,280 x 60% = $768
Blended Salary:
- $640 (fast food operations) + $768 (other operations) = $1,408/week
Legal Recourse for Employees Not Receiving the New Minimum Wage
AB 1228 provides robust legal protections for employees to ensure they receive the mandated minimum wage. Employees who believe they are not being paid according to the new law have several avenues for recourse:
Filing a Wage Claim:
- Employees can file a wage claim with the California Labor Commissioner’s Wage Claim Adjudication Unit. This process allows employees to recover unpaid wages, damages, and penalties.
Reporting Labor Law Violations:
- Employees can file a Report of Labor Law Violation with the Labor Commissioner’s Bureau of Field Enforcement. While this report does not pursue individual claims, it can trigger an investigation and potential citations against the employer.
Alternative Dispute Resolution:
- If an employment agreement requires or allows arbitration, employees can pursue their claims through this alternative dispute resolution process. Arbitration can be a faster and less formal method for resolving wage disputes.
Filing a Lawsuit:
- Employees also have the option to file a lawsuit in court to recover unpaid wages and related damages. Legal representation can help navigate the complexities of wage and hour laws and ensure proper compensation.
Garnishment Protection:
- In cases where employees face wage garnishment, the law protects a portion of their wages. For fast food employees, the applicable minimum wage used to calculate exempt wages from garnishment is the fast food minimum wage of $20.00 per hour, unless a higher local minimum wage exists.
Burden of Proof:
- The employer carries the burden of proof to demonstrate that they are not covered by the new law or that they are in compliance. This legal responsibility ensures that employers maintain proper records and practices to justify their wage policies.
‘Pro-Tip’
Leverage Employee Training Programs: Participate in training programs offered by your employer to improve your skills and increase your value as an employee, potentially leading to promotions and raises.
Role of the Fast Food Council
AB 1228 establishes the Fast Food Council, a key body responsible for overseeing and implementing employment standards within the fast food industry. The council plays a crucial role in ensuring fair wages and working conditions for fast food employees. Here are the details on its composition, responsibilities, future wage adjustments, and public involvement.
Composition and Responsibilities
The Fast Food Council is composed of various stakeholders representing different interests within the fast food industry. The council includes:
Industry Representatives:
- Members from the fast food restaurant industry, including franchise owners and corporate representatives, who provide insights into the business operations and challenges faced by the industry.
Employee Representatives:
- Fast food restaurant employees and advocates for workers’ rights who ensure that the perspectives and needs of the workforce are considered in decision-making processes.
Public Member:
- An unaffiliated member of the public who brings an objective viewpoint and represents the broader community’s interests.
Non-Voting Members:
- Representatives from the Department of Industrial Relations and the Governor’s Office of Business and Economic Development who provide regulatory and economic insights without voting rights.
The council’s primary responsibilities include:
Setting Employment Standards:
- Developing and implementing minimum employment standards specific to the fast food industry, including wages, working hours, and conditions.
Reviewing Compliance:
- Monitoring compliance with established standards and addressing any issues that arise within the industry.
Advising on Policy:
- Advising the state government on policy matters related to the fast food industry, ensuring that policies are aligned with the council’s standards.
Future Wage Adjustments and Employment Standards
One of the key functions of the Fast Food Council is to periodically review and adjust the minimum wage and other employment standards. Here’s how this process works:
Annual Wage Review:
- The council is empowered to increase the minimum wage for fast food employees annually, starting January 1, 2025. The potential increase is capped at either 3.5% or the rate of inflation, as measured by the Consumer Price Index (CPI), whichever is lower.
Regional Wage Variations:
- The council can establish different minimum wages for different regions within the state, considering the varying cost of living and economic conditions across California.
Additional Standards:
- Beyond wage adjustments, the council can set other employment standards, such as working conditions, health and safety regulations, and scheduling practices, to ensure a fair and equitable working environment for fast food employees.
Public Comment and Feedback:
- The council must consider public comments and feedback when proposing new standards or adjustments. This ensures that changes are well-informed and reflective of the needs and concerns of all stakeholders.
Public Involvement and Meeting Transparency
Transparency and public involvement are critical to the functioning of the Fast Food Council. The following measures ensure that the council’s activities are open and inclusive:
Open Meetings:
- The council’s meetings are open to the public, allowing anyone interested to attend and observe the proceedings. This openness ensures that the council’s decision-making processes are transparent and accountable.
Public Comment Periods:
- During meetings, there are designated periods for public comment, where individuals can voice their opinions, concerns, and suggestions regarding proposed wage adjustments and employment standards.
Meeting Notices and Agendas:
- Notices of upcoming meetings and agendas are published in advance, providing the public with sufficient time to prepare and participate. These documents are accessible through official government websites and other public channels.
Minutes and Records:
- Detailed minutes and records of the council’s meetings are maintained and made publicly available. This documentation ensures that there is a clear and accessible record of all discussions, decisions, and actions taken by the council.
Public Hearings:
- For significant changes or new standards, the council may hold public hearings to gather more extensive feedback and engage with a broader audience. These hearings provide a platform for in-depth discussions and allow for a wide range of perspectives to be heard.
‘Pro-Tip’
Maximize Earnings with Shift Flexibility: Negotiate flexible shift schedules to work peak hours when higher customer volume can lead to more tips and better overall earnings.
Frequently Asked Questions (FAQ)
What is AB 1228?
AB 1228, also known as the Fast Food Accountability and Standards Recovery Act, is a California law that raises the minimum wage for fast food restaurant employees to $20.00 per hour effective April 1, 2024. The law also establishes a Fast Food Council to oversee and implement employment standards within the industry.
When does the new minimum wage take effect?
The new minimum wage for fast food employees takes effect on April 1, 2024. From this date forward, all qualifying fast food employees must be paid at least $20.00 per hour.
Who qualifies as a "fast food restaurant employee" under the new law?
To qualify as a fast food restaurant employee under AB 1228, an individual must work in a limited-service restaurant that:
- Allows customers to order and pay before consuming food.
- Is part of a chain with at least 60 establishments nationwide.
- Primarily engages in selling food and beverages for immediate consumption.
Are there any exemptions to the new minimum wage law?
Yes, several types of establishments are exempt from the new minimum wage law:
- Bakery Exemption: Restaurants that produce and sell bread as a stand-alone item.
- Grocery Establishment Exemption: Restaurants located within grocery stores over 15,000 square feet that primarily sell household foodstuffs for offsite consumption.
- Other Location-Based Exemptions: Restaurants in airports, hotels, event centers, theme parks, museums, and gambling establishments.
- Concession Agreements and Food Service Contracts Exemptions: Restaurants operating under specific agreements in private company buildings or public lands.
- These exemptions are still subject to California’s standard minimum wage.
What are the posting requirements for employers?
Employers must display a notice of the new minimum wage in a conspicuous place accessible to all employees. The notice must include the $20.00 per hour rate, effective date, and be available in both English and any other commonly spoken languages among employees.
Can meal or lodging credits be increased to meet the new minimum wage?
No, AB 1228 does not allow employers to increase the amount of meal or lodging credits that count toward the minimum wage. Employers must adhere to existing statewide minimum wage regulations regarding these credits.
Can employers use tips to meet the minimum wage obligation?
No, tips are separate from wages and cannot be used to meet the minimum wage requirement. Employers must pay the full $20.00 per hour wage in addition to any tips received by employees.
How does the new law affect managerial positions?
Managers must receive a salary that is at least twice the state minimum wage for a 40-hour workweek, amounting to $83,200 annually as of April 1, 2024. Managers must also spend more than 50% of their work time on exempt duties to qualify as exempt employees.
How is the blended rate calculated for managers overseeing multiple departments?
For managers overseeing both fast food and non-fast food operations, a blended salary rate is calculated based on the proportion of time spent on each type of operation. This involves calculating the pro-rated salary for each segment and combining them.
Example:
- Fast food operations: $1,600 weekly salary x 40% = $640
- Other operations: $1,280 weekly salary x 60% = $768
- Blended salary: $640 + $768 = $1,408 per week
What should employees do if they are not receiving the new minimum wage?
Employees can take the following steps:
- File a Wage Claim: Submit a claim with the California Labor Commissioner’s Wage Claim Adjudication Unit.
- Report Violations: File a Report of Labor Law Violation with the Labor Commissioner’s Bureau of Field Enforcement.
- Alternative Dispute Resolution: Pursue claims through arbitration if allowed or required by an employment agreement.
- File a Lawsuit: Seek legal action in court to recover unpaid wages and damages.
What is the Fast Food Council?
The Fast Food Council is a body established under AB 1228 to oversee and implement employment standards within the fast food industry. It includes representatives from the industry, employees, advocates, and the public, and is responsible for setting and adjusting wage and working condition standards.
What are the future wage adjustments and employment standards?
Starting January 1, 2025, the Fast Food Council can adjust the minimum wage annually, with increases capped at either 3.5% or the rate of inflation (whichever is lower). The council can also set additional employment standards to improve working conditions and ensure fair treatment for fast food employees.
How can the public get involved with the Fast Food Council?
The council’s meetings are open to the public, and meeting notices and agendas are published in advance. Public comments are welcome during designated periods in the meetings, and detailed minutes and records of the meetings are publicly available. Public hearings may also be held for significant changes or new standards.
Where can more information be found?
More information can be found on the California Department of Industrial Relations website or by contacting local Division of Labor Standards Enforcement (DLSE) offices. Official notices, wage order supplements, and additional resources are available online for employers and employees.
Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.
About The Author
Roger Wood
With a Baccalaureate of Science and advanced studies in business, Roger has successfully managed businesses across five continents. His extensive global experience and strategic insights contribute significantly to the success of TimeTrex. His expertise and dedication ensure we deliver top-notch solutions to our clients around the world.
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