On September 28, 2023, California Governor Gavin Newsom signed Assembly Bill (AB) No. 1228 into law, repealing the FAST Food Accountability and Standards Recovery Act (FAST Recovery Act) (AB 257) and replacing it with a $20-per-hour minimum wage for fast food workers, among other provisions.

Quick Hits

• Fast food restaurant employees in California will be entitled to earn at least $20 per hour, beginning on April 1, 2024.
• The fast food employee minimum wage will increase on an annual basis thereafter, up through 2029.
• The law establishes the Fast Food Council, which will be appointed and may recommend regulations addressing other working conditions, beginning in 2024.

Covered Businesses

The law applies to “fast food restaurants.” The term means “restaurants in [California] that [are] part of a national fast food chain.” A “national fast food chain” is defined to mean restaurants that are:

• “a set of limited-service restaurants consisting of more than 60 establishments nationally that share a common brand, or that are characterized by standardized options for decor, marketing, packaging, products, and services”; and
• “primarily engaged in providing food and beverages for immediate consumption on or off premises where patrons generally order or select items and pay before consuming, with limited or no table service.”

The definition includes, but is not limited to, establishments with the North American Industry Classification System (NAICS) Code 722513 (limited-service...

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