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California Fast Food Industry Minimum Wage (Agreement) Update

16 Apr

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Update Applicable to:Effective date
All employers in the restaurant businessImmediately – 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

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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