The state of California announced on April 1, 2024 that certain workers in the fast food industry will be subject to a new minimum wage of twenty dollars per hour.
A significant step forward in the state’s labor policy, this initiative, which is being led by Assembly Bill 1228, aims to improve the economic conditions of thousands of workers in one of the most dynamic and important businesses. However, who exactly is eligible for this particular increase? For the year 2025, the following is all the information you require.
Who is the $20 minimum wage for?
The minimum wage of twenty dollars is applicable to workers in the fast food industry who satisfy the following criteria:
- It is required that the organization has a minimum of sixty locations across the united states.
- A standardized menu and a unified brand identity are required to be provided.
- It is recommended that the service mostly consist of food that may be taken away or consumed quickly.
- A location in the state of California is required for the establishment.
- Within the restaurant, this encompasses not only those working in the kitchen but also those working in cashier positions, cleaning staff, and other operational duties.
Who is excluded?
Not all employees working in fast food restaurants are eligible for this minimal pay. After some time had passed, Assembly Bill 610 was passed, which included crucial exemptions that excluded specific establishments and employees:
- Located within grocery stores or other large retail establishments are restaurants.
- Establishments that are located within airports, hospitals, or educational institutions to operate.
- Establishments that are considered to be traditional bakeries that sell baked goods directly to customers.
- The proprietor of a family firm is personally involved in the day-to-day operations of the business and has the majority of the managerial authority.
Moreover, the restaurant is exempt from the requirement to pay the minimum wage of twenty dollars if it is a member of a franchise that does not achieve the barrier of sixty sites across the country.
What about other sectors?
The state’s general minimum wage, which will be $16.50 per hour for the majority of workers in 2025, will not be affected by this rise or any other increase.
Differentiated minimum wages have also been adopted in California for various industries, such as the healthcare industry, where certain workers can earn up to twenty-four dollars per hour, depending on the type of facility and the region in which they work.
What should employers know?
In order to be considered, businesses that are active in the fast food industry and match the criteria must:
- Please make sure that all eligible employees receive a minimum wage of twenty dollars per hour.
- Your information posters and payroll systems should be brought up to date.
- The Fast Food Council is an organization that was established to monitor the working conditions in the industry, and it is imperative that you comply with the new regulations that it has imposed.
If these standards are not followed, there may be monetary fines as well as legal action brought by labor unions.
What are the advantages of taking this particular action?
For the following reasons, the minimum wage is being raised:
- lowering the rate of staff turnover in the fast food business can be accomplished.
- The quality of life of workers should be improved.
- In an industry that has traditionally been associated with low wages, establish a norm that is more equitable.
It is also anticipated that the move will have a domino effect on other service businesses, thereby driving for salary increases that are comparable to those in the first industry.
Get informed and check your eligibility
Determine whether or not your company is required to pay you the new minimum wage of $20 per hour if you are employed in a fast food restaurant in the state of California. It is imperative that you do this. For the first step toward ensuring that you are being treated fairly, it is important to be aware of your rights.
In addition, if you are an employer, in order to avoid penalties and to keep a working environment that is both fair and competitive, you should make sure that you comply with the regulations that are now in place.
