In recent months, a buzz has been growing around a significant change in the landscape of employment law in California, specifically targeting the fast food industry. With the introduction of AB 1228, the Golden State has set a new precedent in the fight for fair wages, especially for those working behind the counters and in the kitchens of your favorite quick-service eateries. Let's dive into the nitty-gritty of what this means for employees, employers, and the wider fast food community.
Welcome, AB 1228 - A New Era for Fast Food Workers
AB 1228 is more than just a bill; it's a beacon of change for many Californians employed in the fast food sector. Enacting a significant rise in the minimum wage for "fast food restaurant employees," this law, adding sections 1474, 1475, and 1476 to the Labor Code, concurrently establishes a Fast Food Council. This new body holds the keys to future wage increases and the setting of employment standards in fast food establishments.
The Numbers Game: A Look at the Wage Increase
Mark your calendars for April 1, 2024 - a day when the minimum wage for covered fast food employees will leap to $20.00 per hour. This doesn't only signal a win for the employees but also mandates a responsibility on the employer's part to display a new minimum wage order supplement in a noticeable area within the workplace.
Who Does This Affect?
Specifically, AB 1228 targets employees of "fast food restaurants," defined as limited-service eateries, part of a chain with 60 or more locations nationwide, and primarily in the business of offering food and beverages for immediate consumption. It's worth noting, however, that franchise or brand ownership doesn't exempt an employer from complying.
Exceptions to the Rule
Not all fast food places will feel the impact of AB 1228. For instance, those selling bread as a standalone item weighing at least ½ pound, or establishments nestled within grocery stores larger than 15,000 square feet and primarily selling food for offsite consumption, are off the hook.
Beyond the Basics: Other Critical FAQs
Employers who provide meal or lodging credits can only credit amounts allowed by the statewide minimum wage, with no leeway for additional credits under AB 1228.
Local governments can hike the general minimum wage but cannot specifically target fast food employees for a higher wage under this law.
For salary-based fast food managers not receiving overtime, the law affects their status as an exempt employee if their salary falls below $83,200 from April 1, 2024.
Employers cannot count tips towards meeting their minimum wage obligation.
The Fast Food Council: Guardians of the Future
AB 1228 births the Fast Food Council, a collective voice for the industry, franchisees, employees, and advocates. Tasked with nurturing the working conditions and fair wage standards, this council will convene regularly to contour the path for future wage increments and employment terms specifically for the fast food world. Notably, from January 1, 2025, any wage increase will either match the rise in consumer price index or be capped at 3.5%, whichever is lesser.
Empowerment Through Knowledge
For those feeling the direct impact of this law or curious onlookers, the essence of AB 1228 champions the right to fair pay and the establishment of a governance body ensuring the welfare of fast food industry workers. Whether it's through a leap in minimum wage or setting a precedent for employment standards, California's new law mirrors a bold step towards improving the lives of countless workers in the fast-food sector. As April 1, 2024, approaches, both employers and employees must stay informed and prepared for this transformative change, heralding a new chapter in the state's labor laws.